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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.}

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.

18/11/22

German value of milk drops to 40.55ppl based on a liquid standard litre

The independent IFE in Germany have calculated the average EU farmgate price of milk using recognised SMP and butter prices gathered across mainland Europe’s big three producers- Holland, Germany and France has reduced to 2,967 euros per tonne. Based on a UK liquid standard litre this converts to 40.55ppl and based on a liquid standard litre 42.44ppl

15/11/22

GDT up 2.4%

Todays fortnightly GDT Auction resulted in the all products index increasing by 2.4% to average US $3623 tonne. The quantity sold was almost identical to that sold 2 weeks ago at 28,980 (28,867) with the number of participating bidders increasing from 142 to 161 however actual successful bidders totalled 111 against 116 only two weeks earlier. Notable movements were WMP up 3.

11/11/22

What goes up must come down

That’s the title of the 1974 Soul Record by Tyrone Davis and it’s certainly the case with Milk Prices. The 1st November milk price increase from Arla and the 50p hold by the likes of Freshways have both snookered most milk buyers however the pressure for 1st January and beyond farmgate milk prices drops are now looking painful and brutal. By brutal I mean in the drops will likely come monthly and in multiple pence per litre, unless a miracle occurs, because markets are going south at a pace and most processors will have no alternative but to pull back on farmgate milk prices asap.

11/11/22

Don’t shoot the messenger it’s a wake up call.

Back on the 12th August this bulletin stated: In short, its 12 o’clock for many dairy farmers and pointing their prayer mats towards Leeds and Denmark praying these prices hold as well as not trying to ramp up production is their best game plan. This was reference 1st September 48 to 50p declared price rises and 3 months later its proving to be the case! Your prayers were answered but don’t rule out Arla could be a front runner in price reductions however the smart money must surely be on Arla holding until at least 1st January.

11/11/22

HMRC seek to put Eleven Trading 2022 Limited into receivership (AKA Medina Dairy Limited)

Eleven Trading 2022 Limited, which is one of a number of Medina Companies, are being pursued by HMRC for what is understood to be a significant 7 figure sum owed. The hearing is scheduled at the High Court in London next Wednesday 16th however the word is that the business has now been placed into Voluntary Liquidation and the hearing will be shelved. No Medina farmers or any other dairy suppliers are involved or outstanding any monies.

11/11/22

0.56ppl milk price increase for suppliers to Arla Direct – from 1st November

This increases producers liquid standard price to 46.43ppl and based on a manufacturing standard litre to 48.32ppl.

11/11/22

The Lidl fixed price contract benefits from another voluntary price uplift

The 3 year Lidl Muller Direct fixed price deal at 29ppl which started on 1st July 2021 has received its 4th surprise boost from the retailer with an extra 2ppl taking producers liquid standard litre price to 48ppl from 1st November. Total increase from Lidl is now a tasty 19ppl on top of the original 29ppl deal for up to 50% of producers output. It’s a move for which Lidl and Muller should be congratulated.

11/11/22

1.33ppl milk price increase for Arla Organic Suppliers – from 1st November

This latest increase results in a 1st November manufacturing standard litre price of 57.02ppl and based on a liquid litre of 54.85ppl.

28/10/22

0.5ppl Milk Price increase for suppliers to Crediton Dairy (liquid) – from 1st December

This increases producer’s liquid standard litre to 48.5ppl

28/10/22

Stand on Milk Price for Saputo (AKA Dairy Crest) Davidstow producers for December is a ballsy move by Saputo which could cost them producers

Saputo have dealt another surprise blow to their loyal producers with todays announcement that it will hold its milk price of 47.73ppl based on a liquid standard litre and 49.50ppl based on a manufacturing standard litre until 1st January. Saputo have announced a floor price at this level until March 1st however this was not agreed with DCD consequently has not been recognised in their latest Member Newsletter.

27/10/22

1.33ppl further price rise for Arla members is an impressive surprise

Arla have once again announced a further impressive member milk price rise from 1st November as follows: Standard Litre Manufacturing +1.33p 52.24ppl Liquid +1.28p 50.24ppl Several processors were at best expecting Arla to hold given the sentiment in the World Commodity Markets is slightly down and domestic milk production is showing signs of increasing.