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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.}

02/12/22

Average farmgate milk price tops 50p in October & AMPE crashes for November

Yes, the October DEFRA provisional average paid out farmgate milk price currently stands at 50.44ppl. Meanwhile AMPE has taken a big hit down 6.58p (13%) in a month from 51.27p in October to 44.69p in November.

02/12/22

1.38ppl milk price increase for Arla Directs – from 1st December

This results in a liquid standard litre price of 47.76ppl

02/12/22

0.5ppl milk price increase for Sainsburys aligned suppliers – from 1st December

This increases producers standard liquid litre price to 47.5ppl (Muller) and 47.38ppl (Arla) In making the announcement Sainsburys have flagged up the intention (likelihood) that by Spring 2023 producers will return to the COP model which currently stands at 43.88ppl.

02/12/22

0.16ppl milk price increase for CTDG (Co-op) aligned producers – from 1st December

This is as a result of the 0.5ppl increase from Sainsburys who are part of the Co-ops basket pricing of three milk buyers. This results in a liquid standard litre price of 47.83ppl.

02/12/22

3ppl milk price drop for Freshways suppliers – from January 1st

This reduces suppliers liquid standard litre price to 47ppl and in its letter to producers it states a number of reasons for the drop including increase in volumes and a significant fall in cream income.

02/12/22

1.5ppl milk price drop for South Caernarfon Creameries suppliers – from 1st January

This reduces suppliers manufacturing standard litre price to 48.5ppl and based on a liquid standard litre to 46.83ppl

02/12/22

Futures trades continue to head South

The Stone X Milkprices.com Net UKMFE return to producers (allowing for haulage and processor margin) continues to head South with the latest posting from www.milkprices.com headlined as “another dreadful week.” This was with reference to the last week in November which recorded a total net return to a producer of only 33.28ppl a drop of 1.52ppl in a week. This comes only 9 weeks after the record high of 49.

02/12/22

Kite Consulting now part of AB Agri Group

John Allens baby Kite Consultancy and Advance Sourcing has been acquired by AB Agri which includes familiar names like Trident Feeds, KW Feeds, Frontier, ABN plus many others. Kite will continue to operate as a standalone basis providing independent advice to GB Dairy Farmers. It will be interesting to see how Kites Advance Sourcing and its feed recommendations/sourcing can maintain its independency given its new owners pedigree in that area.

25/11/22

Arla Stand on milk price until 2023

Arla will hold its member milk price until 1st January for both Conventional and Organic. Conventional Organic December Milk Price PPL PPL Manufacturing 52.24 57.02 Liquid 50.24 54.85 In todays press release Arla Foods AMBA board director Authur Fearnall commented “The outlook is negative, driven by the continued decline in commodity prices.

24/11/22

Cheese Processors with stocks are under pressure as Less = More

Ian has received a handful of emails plus one telephone call from readers who feel he should not have written his 11th November bulletin commentary “what goes up must come down.” One caller suggested he tones it down because he was fuelling price cuts which if Ian keeps quiet would be less than he suggested. Well Ian has thought about this and decided that the most irresponsible thing to do is keep quiet and to pretend that things are not that bad.

24/11/22

Arla lead the pack

Well in recent months/years the majority of GB milk buyers have tended to follow Arlas lead. Whilst Ian does not anticipate Arla dropping its 1st December member milk price, he equally doesn’t anticipate Arla to be totally irresponsible and put a final increase through. So, the short odds are for a stand on until 1st January. The days of following Arlas lead are limited if not over for many milk processors.

21/11/22

Record October GB milk production

AHDB Dairy estimates confirm Octobers GB farmgate milk output stands at 1.04 billion litres which sets a new record since records were collated in 1998. This has surprised most analysts including AHDB whose October production forecast was smashed by a tasty 40 million litres/1.3 million litres day equivalent to a 4% jump. Meanwhile mainland Europe milk production for September was up 0.