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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.}

31/01/19

Crediton Dairy unveil its £12m Expansion

Starting next month Crediton will invest £12 million in its flavoured milk processing facility boosting its processing capacity. Completion is planned for August 2019. Since the Management buyout less than 6 years ago this will take the total Crediton investment will amount to £26 million.

31/01/19

Wyke Farms to double its capacity

Farmhouse cheese makers Wyke have secured planning permission which when complete will almost treble its output from the current 18,000 tonnes to around 50,000 tonnes. The new facility will be named Ivys Dairy after the familys famous grandmother and will be built in stages over 8 years.

31/01/19

UK Milk Futures Equivalent (UK MFE) prices take a battering

The FC store milkprices.com UKMFE forward trades took a battering last week with weaker prices for butter, and SMP plus a further strengthening of sterling against the euro. www.milkprices.com calculate that in the past 4 weeks these combined price movements equate to 1.48ppl drop in milk values and takes the net UK MFE milk price to 27.10ppl

31/01/19

Dairy Crest Direct (Davidstow) to hold its milk price for March

This means that for March deliveries the Dairy Crest standard Manufacturing litre milk price remains at 29.9ppl and based on a standard liquid litre is at 28.82ppl

31/01/19

Unfortunate Market Intelligence comment from AHDB

Within minutes of the Muller price drop announcement came an AHDB Dairy Market weekly update with a headline: “Boost to market value of milk may halt drops in farmgate prices.” The news item pointed to a reversal of “the direction of market trends “ which could put an end to downward pressure on market farmgate prices. Very unfortunate timing by AHDB Dairy Market Intelligence.

31/01/19

What message does Ian think Muller are sending to the Industry

Muller were unavailable for coment today but Ian thinks their message is very simple. “We can’t make money in the UK liquid market having invested a shed load of money. The NFU’s are insisting farmers share the risks and rewards with milk processors. Consequently we have cut the farmer milk price to share the risks and lack of rewards with our farmer suppliers just as the NFU’s are insisting.

31/01/19

1.25ppl shock price drop for Muller Direct producers from 1st March

Muller have shocked the majority of the Dairy Industry with a 1st March price drop amounting to 1.25ppl. Muller say one of the key reasons for the drop is a surge of unplanned milk smashing all forecasts and expectations. Muller have indicated they were irresponsibly scare mongered by various organisations that on farm winter production would be hit hard following last summers drought.

25/01/19

Yeo Valley launches conventional direct supply contract

Yeo Valley is recruiting its own direct conventional milk pool with milk going into its Blagdon and Cannington processing facilities destined for own label yoghurts for the majority if the UK’s major retailers. The contract and recruitment is a partnership with First Milk who are administering the contract and this will certainly be of interest to farmers within the Somerset and Devon and Dorset Borders It appears to be a premium contract along with a a floor price feature offering protection in the form of a minimum price guarantee of not less that the average www.

25/01/19

December milk production at a 25 year high

DEFRA's latest UK December milk production data suggest UK milk production was 1.234 billion litres the highest December output for 25 years or more. Compared to December 2017 total milk was up 2%.

25/01/19

0.65ppl milk price reduction for suppliers to Wyke Farm (cheese)-from 1st February

In what could easily be the final February milk price reduction announcement Wyke Farms will reduce Farmgate milk prices by 0.65ppl. The reduction means a 1st February standard manufacturing Litre milk price of 28.99ppl and based on a standard liquid litre 28ppl.

25/01/19

Arla hold its February member milk price

Arla has stood on with both its 1st February conventional and organic member milk price which is highly likely to translate to all other milk processors having to fall into line especially given the earlier announcement from Muller that it is holding its Muller Direct price for February. The Arla standard litre member prices for January and February are Liquid Manufacturing Conventional 29.

18/01/19

0.25ppl milk price reduction for members of 1st Milk- from February 1st

This results in a standard manufacturing litre price of 28.43ppl and based on a standard liquid litre 27.5ppl.