Call Us

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.}

25/01/23

Cream halves in value with talk of flush excess milk at under 20ppl

Bulk Cream values continue to head South at an alarming rate and values are now at 50% of their peak compared to only 2 months ago in November when they topped at £2.80kg with this week trades at £1.35 to £1.40kg. That’s a drop in cream value of 9ppl on every litre processed. The next GDT Auction is not until 7th February but with the last sale results converting to UK milk price of 30ppl and EU dairy prices lower than in the UK, its looking bleak.

25/01/23

Futures trades hit a 69 week low

www.milkprices.com have reported that the StoneXMilkprices.com UKMFE forward curve has hit a 69 week low with February to September 2023 now showing a net return to a producer from butter/powder values of 28-29ppl and still weakening. The StoneXMilkprices.com UKMFE Nett return to a producer stood at 34.85ppl on 10th January. By the 23rd that figure has reduced to 30.

25/01/23

2ppl milk price reduction for suppliers to Grahams Dairies – from 1st February

In a very open and frank letter to its farmer suppliers MD Robert Graham points to the collapse of prices in the first 3 weeks of this month with “prices falling daily”. Whilst the 2p reduction in unwelcome Grahams say “it is absolutely necessary that we reduce the price the business pays … and then goes on to point out the blindingly obvious that further decreases in March, April and May are on the cards concluding with if the flush is big then pricing (Not necessarily Grahams) will start with a 2 (below 30ppl).

25/01/23

It’s not as simple as keep putting prices up and consumers will pay

That’s the statement from Robert Graham in his letter to his farmers who highlights an (unnamed retailer) Grahams trade with where a 15p increase in a dairy product supplied by Grahams resulted in a whopping 70% decrease in sales. Unfortunately, milk supply and demand is a perfect storm. Farmers have ramped up production whilst consumers have reacted to high dairy prices.

25/01/23

1ppl milk price reduction for aligned suppliers to Sainsburys (SDDG) - from 1st February

This reduces producers liquid standard litre price to 46.5ppl (Muller) and 46.38ppl (Arla). The current Sainsburys COP stands at 44.85ppl which is currently topped up by an additional 1.65ppl.

25/01/23

1ppl milk price reduction for suppliers to Paynes Dairies – from 1st February

This reduces producers liquid standard litre price to 47ppl.

24/01/23

Pensworth Dairy closes its doors within days of Freshways becoming the largest shareholder in Kent Dairy - This is an updated version of story posted on this page last week following further discussions with all three parties involved

Pensworth Dairy who operate across the South East, East Anglia, South West, Wales and the Midlands and buys a proportion of its milk from 10 local farmers has closed its doors. Last week Pensworth informed their farmer suppliers that they will no longer collect their milk and to immediately seek a new milk purchaser. With the help of Pensworth it is believed 9 of the farmers have found new homes for their milk with Cotteswold and one with Freshways Freshways have confirmed they purchased the Kent business on Friday 13th January in a deal which was negotiated quickly.

17/01/23

GDT is more or less a stand on

Todays GDT resulted in the average all price auction index reducing by only 0.1% which is more or less a stand on at US $3393 tonne ($3365 2 weeks ago) Todays quantity sold was down 5% or $1606 to 31,872 tonnes (33,478 two weeks ago) with the number of participating bidders increasing to 164 (132 two weeks ago) and the successful buyers increased to 127 (114 two weeks ago).

10/01/23

Milk price Armageddon on its way

This is the headline and comment today from www.milkprices.com Milk price Armageddon this spring? Barring a miracle its coming. Our forward market indicators are now ringing alarm bells off the wall. For the majority, no surprise if milk price levels have to fall by 10ppl to 12ppl before the end of Q2 for some that may not establish the low That’s another farmgate milk price prediction of under 40ppl.

10/01/23

1ppl Milk Price Reduction on the Lidl fixed price contract

Inevitably and indeed understandably the Muller/Lidl 3 year fixed price deal has seen a 1ppl reduction to 47ppl from 1st February which mirrors the Muller direct reduction. The original deal farmers signed up to was a 3 year fixed price of 29ppl which runs until the end of June 2024.

06/01/23

1.5ppl milk price reduction for suppliers to Meadow Foods – from February 1st

This reduces producers liquid standard litre price on their A litres to 45.5ppl. In its communication Meadow highlight bulk cream prices in September were £2.85kg and at one point during the Christmas period fell to £1.70kg a drop in value of 11.5ppl to a liquid processor.

06/01/23

Stand on price at 48ppl for suppliers to Paynes (Liquid) who have also opened up their recruitment door

Paynes Dairies have confirmed a stand on liquid standard litre price of 48ppl for January and given the moves by others it must be likely that any February 1st adjustment will be 1ppl or at worst 1.5ppl (TBC) Whilst nationally there are now significant volumes of milk Paynes have opened their recruitment books to fulfill new and existing customer demand.