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 Ian & the team 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 Ian Potter 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.

Freshways B litre price to 31st December 2021

Freshways have gained another brownie point with a commitment to its producers that from 1st July to 31st December any B litres, over and above their A litre quota, will be paid the A price for that month as a minimum base price and hopefully more. Freshways liquid standard litre price for July is 28.5ppl.  

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AMPE has seen its first reduction in 2021 reflecting a slight June softening in both SMPand butter prices due to a cooling off in demand. The reduction equates to 2%. See table above (source AHDB Dairy).  Note both AMPE and MCVE are monthly values. AMPE is (Actual Milk Price Equivalent) and an indicator of the factory gate value of a litre of milk used for butter and skimmed milk powder.

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0.5ppl milk price increase for suppliers to Saputo (AKA Dairy Crest) – from 1st August

This increases producer manufacturing standard litre price to 31.15ppl and based on a liquid standard litre to 30.04ppl.

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0.75ppl increase for suppliers to Pattermores (Liquid) – from 1st July

This increases producer's liquid standard litre price to 29ppl and based on a manufacturing standard litre to 29.918ppl.

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0.5ppl Milk Price increase for First Milk members = 4 in a row and 31ppl

First Milk has made it four consecutive price increases in a row with the announcement of this 0.5ppl 1st August increase. This increase results in a (www.milkprices.com) standard manufacturing litre price of 31ppl and based on a liquid standard litre 30ppl (TBC).

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Arla to stand on for July

Arla’s member milk price will remain at its June heights for July. There is a tiny 0.03ppl quarterly currency smoothing adjustment from July 1st which slightly reduces the June price.                                                       Conventional         Organic 1st July  Manufacturing Standard Litre         33.20ppl              41.56ppl Liquid Standard Litre                      31.

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0.5ppl Milk Price increase for Lactalis (The Fresh Milk Company) suppliers – from July 1st

This increases producers manufacturing standard litre price to 30.73ppl and based on a liquid standard litre to 29.5ppl.  

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0.5ppl Milk Price increase for Dale Farm Cumbria members – from July 1st

This increase takes Dale Farm members liquid standard litre price to 29.14ppl  

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Dale Farm (Northern Ireland) Milk Price stand on for May

This maintains members standard liquid litre price at 30.84ppl and note this is a 1st May price!

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0.75ppl Milk Price increase for suppliers to Meadow Foods – from July 1st (PRODUCER NOTIFIED)

This welcome increase is on the A litres and takes Meadows liquid standard litre price to a straight 29ppl and based on a manufacturing standard litre 29.63ppl.  

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2.5ppl Milk Price increase for suppliers to Lanchester Dairies (Liquid) – from July 1st (PRODUCER NOTIFIED)

This will result in a liquid standard litre price of 27.5ppl (TBC) and is paid on the A litres.  In addition, any Lanchester farmers (circa 75 in total) who increased deliveries in April and May will have a penalty on their milk price on the additional litres which will be effectively a B price. Lanchester refer to this milk as ‘distressed milk’ which for April will be 20.

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Brief Market Update

Spot Milk is trading around 23ppl. Forward prices on the StoneXMilkPrices.com UKMFE chart have recorded their third consecutive weekly decline.  According to www.milkprices.com the UKMFE forward curve value has declined 1.14ppl in those 3 weeks with Butter and SMP down as well as a currency decline. All of this converts to a net UKMFE return to farmers of 29.

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