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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.}

10/08/22

0.5ppl milk price increase for suppliers to Wyke Farms (cheese) – from 1st September

This increases producers manufacturing standard litre price to 49.2ppl and based on a liquid standard litre 47.5ppl

10/08/22

2ppl milk price increase for suppliers to Glanbia cheese – from 1st September

This increases producers manufacturing standard litre price to 48.25ppl and based on a liquid standard litre to 46.57ppl

08/08/22

GDT crashes a further 5%

Another big fall in this weeks GDT auction of 5% comes on the back of an identical 5% fall only two weeks ago and makes a total of 9 falls out of the past 10 auctions and its not looking great for the global commodity markets. The average Auction price was US $3913 tonne down 5% from the $4166 clocked up only two weeks ago. The number of participating and winning bidders were up by 12 to those seen in the previous auction with 161 participating bidders (149 on the 19th July) and 120 winning bidders (109 on the 19th July).

29/07/22

Tesco follow Muller with 47p September milk price (or is it Muller following Tesco?)

Within a few hours of todays 1ppl milk price announcement from Muller comes the announcement that Tesco will pay the same. The big question is are Muller setting the Tesco price or are Tesco setting the Muller price for 1st September!

29/07/22

1ppl milk price rise for Muller Directs – from 1st September

This increases producers liquid standard litre price to 47ppl for those who qualify for the 1ppl Muller advantage premium. This 1ppl increase will inevitably be viewed as the very minimum Muller could have agreed and it remains to be seen whether it is enough to “support our farmers and protect the security of supply” as stated by Muller today. With Arla members receiving 48.

28/07/22

Stand on September milk price for South Caernarfon Creameries (SCC) Suppliers – PRODUCER NOTIFIED

The Welsh cheesemaker has decided not to increase its September farmgate milk price from its current level of 48ppl based on a manufacturing standard litre price and 46.35 based on a liquid standard litre price. This is highly likely to see SCC amongst the lowest GB milk prices for September particularly in the cheese world.

28/07/22

Muller Tesco farmers are now examining the smallprint

There is serious unrest in the aligned camp and the latest fact doing the rounds relates to the illogical change on how volume bonuses are calculated. When the TSDG was conceived the volume bonus paid to prodcuers was based on the total volume collected from each farm on the one pickup. The deal Muller Tesco farmers are on today is that a volume bonus is paid on the litres taken by Tesco (this month at a liquid standard litre price of 46ppl) and a separate calculation is made for the scale back litres which Muller use (this month at a liquid standard litre price of 45ppl note no 1ppl Muller Advantage Premium).

28/07/22

0.86ppl milk price increase for Arla Directs brought forward a month

Yesterdays Arla member price increase of 0.86ppl (0.9ppl manufacturing) has been mirrored for Arla Directs (which includes Arla aligned directs.) Normally Arla would give voluntary code compliant 30 days advance notice but on this occasion the notice has been bypassed and the increase takes effect from 1st August. The increase results in a liquid standard litre price of 45.

28/07/22

1.5ppl milk price increase for suppliers to Saputo (AKA Dairy Crest Davidstow) – from 1st September

This increases producers manufacturing standard litre price to 49.5ppl and based on a liquid standard litre 47.72ppl

27/07/22

0.9ppl milk price rise for Arla conventional members rocks over 50p from 1st August

According to Ians records Arla GB members have never had a positive or negative price adjustment on the 1st August but as we all know these are non standard times in the Dairy Industry. The 1st August member price will increase by 1 euro/cent/kg for Arla conventional members which converts to a 0.9ppl increase based on a manufacturing standard litre. In the press release there is reference to “Commodity prices have weakened in recent weeks however; they still remain at a high level.

27/07/22

0.9ppl milk price rise for Arla Organic members – from 1st August

This is a mirror image of the conventional price increase detailed above and results in a 1st August manufacturing standard litre price of 56.01ppl and based on a liquid standard litre 53.87ppl.

27/07/22

5ppl milk price increase for suppliers to Medina (Liquid) – from 1st September

This latest increase takes producers liquid standard litre to 50ppl