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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.}

02/08/19

Lactalis (The Fresh Milk Company) hold its milk price

Lactalis have held their guaranteed minimum milk price for the period July 1st to September 30th at 28.27ppl based on a standard manufacturing litre price and 27.13ppl based on a standard liquid litre.

02/08/19

First Milk holds members milk price for September

Based on a manufacturing standard litre the price remains at 28.37ppl and on a liquid litre 27.45ppl. For those supplying the Tesco cheese pool their standard manufacturing litre price remains at 28.87ppl.

02/08/19

Barbers (cheese) hold producers milk price for September

Based on a manufacturing standard litre the Barbers price remains 28.56ppl and based on a liquid standard litre 27.75ppl.

02/08/19

First Milks results look solid

First Milk have released their 31st March 2019 financials which given they were made public in July is certainly a seismic improvement from the years when they were published in October and November for fear of loosing members. Turnover + 7.8% to £272.3m Operating profit £2.7m (£3.2m in 2018) Operating profit as a % of turnover 2.6% and stable. Nett Debt reduced by £3.

02/08/19

First Milk to close its Arron Creamery

Commercial Dairy Farming on the Isle of Arran will almost certainly end in 2019 and with it the production of branded Isle of Arran cheese. Only two farmers remain and First Milk decision to close the factory will likely be the final nail in the coffin. It is understood that post the closure of the Arran factory First Milks have offered to collect milk and transport it to the mainland but only for a very short period during which time the cows will have to be sold.

04/07/19

Dairy Crest (Saputo Dairy UK) launches low calorie Cathedral City Cheese

Dairy Crest continues to drive innovation with its latest development of a 50% less fat Cathedral City branded cheese called “Cathedral City 82”. Its a half fat cheese with one third less calories than standard cheese. The 82 range is initially exclusively available in Tesco stores for nine months until March 2020. This looks like a smart move by DC.

04/07/19

AHDB’s Dairy Contracts Legislation briefing tows the Unions Line on contract legislation

Ian had a sneak preview of AHDB’s latest briefing ahead of its publication on their website yesterday. Its certainly a political hot potato and could easily have been written by the NFU’s and over stamped with AHDB’s Market Intelligence branding. Four pages of the 10 page briefing are devoted to reviewing how legislated milk contracts in Italy, France and Spain operate yet no mention is made of the fundamental basics as to whether such legislation is delivering those farmers a consistently better milk price than that paid to GB farmers under discretionary pricing.

04/07/19

Muller confirms the closure of its Foston Derbyshire facility

It was a forgone conclusion that as part of Mullers £100 million project Darwin it would close at least one factory and it was no surprise that Foston is the one to be closed by the end of this year with the loss of 223 full time jobs. Most of the milk will be diverted to Mullers Manchester or Market Drayton facilities. Regrettably 31 farmers are likely to be served 12 months notice by Muller as a result of the closure mainly due to geographical location.

04/07/19

The Dairy Crest name has been ditched

It hasn’t taken long for Dairy Crests new Canadian owners Saputo to change the signs to Saputo Dairy UK as the name Dairy Crest is confined to the history books. The Dairy Crest name was christened in the 60’s by the MMB who started to sell its cheese under the brand name. Will DCD be rebadged as SDD (Saputo Dairy Direct) which is the same abbreviation for s

04/07/19

Meadow Foods Bombshell notice to find another Milk Buyer

Last week Meadow sent a letter to a number of its producers giving them 12 months notice that they no longer require their milk. Meadow declined to confirm how many notices have been issued but judging by the people who have contacted Ian and alternative milk purchasers it could easily number 50 plus affected farmers. Meadow informed Ian the notices are linked to quantity of milk supplied, farm assurance, milk quality including claiming they have weeded out the “farms we couldn’t take a customer onto”.

04/07/19

Barbers (cheese) stand on August milk price

This means continuation of the standard manufacturing litre price of 28.56ppl and based on a liquid standard litre 27.75ppl.

04/07/19

Saputo Dairy UK (AKA Dairy Crest Davidstow) stand on August milk price for a 6th consecutive month

This is a notable achievement by the cheese processor and DCD which means producers August standard litre milk price of 29.90ppl (manufacturing) and 28.82ppl (liquid) continues for a 6th consecutive month.