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Dairy Industry News and Features

Our Weekly News Bulletin is available by email. To receive it please email info@ipmsltd.co.uk.

^{Note, all standard litre prices are those quoted by www.milkprices.com and are based on the following:

The liquid standard litre 4% bf, 3.3% protein, 30,000/ml Bactoscans, 200,000/ml SCC, 1 million litres a year on EODC but before seasonality, monthly profile payments, balancing, B price additions, capital retentions or annual incentive schemes. The manufacturing standard litre is to exactly the same specification with the exception of 4.2%bf and 3.4% protein.}

^{Remember this bulletin continues to be available free of charge and takes the team at Ian Potter Associates considerable time to produce. The only encouragement to keep producing it is a combination of enthusiasm, tag sales & enquiries from our readers.} ^{All views expressed in this bulletin are those of Ian Potter Associates and a shed load of dairy farmers. It is necessarily short and cannot deal with various issues that arise in any detail. As a result it must not be relied on as giving sufficient advice in any specific case. Every effort has been made to ensure the accuracy of the content but neither Ian Potter Associates nor Lydia Clare personally can accept any liability for any errors or omissions. Professional advice must always be taken before any decision is reached. For our privacy policy please click here.}

11/10/19

Grahams Dairies Scotland (liquid) to hold its producer milk price for November

This means the existing standard litre price of 26ppl continues.

11/10/19

First Milk to double its Member Premium in 2020

This is effectively a 13th payment and will increase from the current 0.25ppl to 0.5ppl from April next year.

11/10/19

Glanbia defer November Milk Price decision fearing a No deal Brexit car crash

In a comprehensive letter to its Anglesey mozzarella cheese factory suppliers Glanbia’s CEO Paul Vernon has outlined the crisis the company would face if we end up with a no deal Brexit and the proposed tariffs. Cheese sales to the EU will incur a crippling tariff of 1852 Euros/tonne which represents a cost of approximately 60% on current sale prices and in PPL terms represents 18ppl!! Glanbia Anglesey export almost half of its Mozzarella output and this tariff coupled with Zero tariffs on imported mozzarella results in l a very potent cocktail to swallow.

11/10/19

Market Indicators

Given the Brexit no deal possibility Ian has decided not to report on UK Wholesale prices for cheese, SMP, Cream etc because it could all go downhill and change very quickly and to give price indicators a this stage would be pointless.

11/10/19

No deal dairy tariff car crash could cost the UK dairy industry £1.3 billion

Jaws could be heard hitting the desks of dairy processors earlier this week when the government dropped the bombshell that it’s temporary no deal Brexit will see European dairy products able to come into the UK subject to Zero or minimal tariffs. Meanwhile the significant volume of UK dairy exports currently going into Europe (90% of our dairy exports) will be hit with WTO tariffs which were was described by Dairy UK as “cripplingly high” and will make our dairy products uncompetitive in Europe.

11/10/19

Another liquid Processor to close

“17years of marvellous milk and yummy yoghurts” from Marybelle dairy in Suffolk looks set to come to an end very soon. The processor supplies its products to local Co-op stores, Asda, Morrisons & Waitrose plus other outlets but simply cannot make money, and with its closure goes the last dairy processor in East Anglia and the loss of 19 jobs.

11/10/19

Single Farm Payment Exchange Rate Set

The 2019 SFP Basic payment exchange rate will be 89.092p to the Euro compared to 89.47p in 2018.

11/10/19

Muller set to address rocketing Scottish Milk output

Muller has an oversupply problem in Scotland which it is tackling this month having experienced a 25% surge in milk supplies from its 230 Scottish farms which is way ahead of demand during the past 5 years. This equates to 180 million litres of additional milk equivalent to 33 litres of extra milk per person living in Scotland. By my calculations thats 6,316 tankers a year @ 28,500 litres with each trip from Bellshill to Manchester (Muller’s most Northerly English dairy) amounting to 410 miles return.

11/10/19

Dairy Farmer Crowd Funding bid to save Campletown Creamery

29 Kintyre Peninsula Dairy Farmers have announced a crowd funding bid seeking £50,000 to acquire the Mull of Kintyre cheddar cheese processing site from First Milk. Their plan is to use a combination of crowd funding plus a per litre levy on all milk supplied. The Kintyre site has processed local farmers milk since 1923. For details see http://www.crowdfunder.

06/09/19

1ppl Milk Price reduction for Suppliers to Joseph Heler (Cheese) – From 1st October

The conversion of Helers farmgate milk price to a standard litre price is a very close guarded secret and that’s not surprising given all the information Ian has points to Helers price being one of the lowest GB cheese prices around if not the lowest.

06/09/19

1ppl Milk Price reduction for suppliers to Belton Farm (Cheese) – October 1st

Belton are one of the few cheese processors to cut its milk price which from October 1st will be 27ppl and based on a liquid standard litre 26.25ppl.

06/09/19

First Milk to stand on/hold its member Milk Prices for October

This results in a continuation of the co-op’s manufacturing standard litre price at 28.37ppl and based on a liquid standard litre of 27.5ppl.