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.

Saputo (AKA Dairy Crest cheese) to stand on is a surprise and disappointment

With most if not all cheese processors announcing 1st October or 1st November price increases it has come as a huge disappointment to DCD and many Dairy Crest producers to learn that their milk price will not change before 1st December 2021.  The stand on price is 31.15ppl based on a manufacturing standard litre and 30.04 based on a liquid standard litre.

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Bombshell 2ppl immediate milk price cut for Omsco members

200 organic members of Omsco were given only 24 hours’ notice of a whopping 2ppl milk price cut from today 1st October.  Without doubt this put chairman Neil Kennedy and the Omsco board firmly in with a very small handful of UK milk buyers who need to be pulled into line by others by the governments contract legislation. For Omsco members to suddenly see their total revenue drop by 5% overnight and to already be wrestling with increased on farm costs must make them weep and wonder what’s next.

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The market sentiment is up (excluding OMSCO’S organic price)

The average stonexmilkprices.com net UKMFE return to producers, taking into account a processor margin and a 2ppl farm to processor haulage charge, has lifted to 31.36ppl.  Forward prices for butter & smp together with weaker sterling pushed the average up by 0.47ppl bolstered particularly by January and February 2022 gains.  Meanwhile AHDB report spot trades are also continuing their upward trend and in the space of the past month bulk cream has gained 6% to average £1656 tonne, SMP gained 4.

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Some processors are playing Russian Roulette whilst others are understandably frightened

Escalating inflation at both processor and farm level appears unstoppable.  There are reports that some of our largest producers are cutting milk output due to labour shortages whilst those who have labour are facing cost inflations particularly if they were paying relatively low rates to skilled operators. Three processors Ian has spoken to this week have basically said either customers accept price increases or risk not having the milk this winter.

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1ppl Milk Price increase for Muller Direct Suppliers – from 1st November

This increases producer’s liquid standard litre price to a level 30ppl including the Muller Advantage 1ppl paid annually in arears. This increase is likely to be followed by the majority of other liquid processors who have yet to declare.

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1.5ppl milk price rice for Paynes Suppliers

Yorkshire liquid processor Charlie Payne has today declared a 1.5ppl farmgate milk price increase split over 2 months with 1ppl starting in a week’s time on October 1st and an additional 0.5ppl from November 1st.   This is highly likely to be a case of the first move is to increase farmgate milk prices in recognition of rapidly rising on farm costs to be quickly followed by the necessity for Payne’s to achieve meaningful price increases from customers to cover both these farmgate price increases plus an obvious raft of processor increased costs e.

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1.5ppl milk price rise for Freshways with a 6-month minimum price guarantee

Freshways have today declared a 1.5ppl farmgate milk price increase from October 1st resulting in a liquid standard litre price of 30ppl.   The announcement comes with a welcome commitment that this 30ppl price will be a floor price until at least 31st March 2022. Note this means only upward movements can be declared.   Freshways are commencing a milk recruitment campaign for potential new suppliers with existing direct suppliers invited to put forward requests for increased standard litre deliveries.

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0.47ppl milk price increase for suppliers to Wensleydale Creamery (cheese) from 1st October

Wensleydale Creamery announced on the 21st September, ahead of its competitors, a 0.47ppl increase which results in a liquid standard litre price of 29.47ppl.

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0.5 Euro cent milk price increase for Arla members – from 1st October – (Posted Facebook and Website 22nd Sept)

Arla have declared a 0.5-euro cent milk price increase for both its conventional and organic members from October 1st. Coupled with a 0.13ppl currency adjustment the nett increase is 0.32ppl resulting in the following www.milkprices.com standard litre prices.                                                             Conventional               Organic Manufacturing                                     32.

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August average farmgate milk price 31.24ppl

This is 11% up on the August 2020 average. The July average farmgate price previously estimated at 30.9ppl has been revised to 30.09ppl and is according to Dairy Industry News the third highest average ever recorded.

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GDT up another 1% to break the $4,000 tonne mark – (Posted Facebook and Website 21st Sept)

Hot on the heels of a whopping 4% average all products increase only two weeks ago comes today’s Auction result where average prices rose a further 1% to average US $4011 tonne this been the 3rd consecutive increase.   Total sold amounted to 24,476 tonnes slightly down on the 25,093 tonnes sold two weeks ago. Key movements were: WMP up 2.2% to average US $3,777 tonne SMP up 0.

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Next Week

Who would have expected the likes of Payne’s, Wensleydale and Freshways to announce price increases from 1st October alongside Arla and ahead of the pack?

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