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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.}

04/05/22

0.75ppl milk price increase for Tesco aligned suppliers – from 1st June

This takes producers standard liquid litre price to 41.59ppl (Muller) & 41.34ppl (Arla)

04/05/22

0.94ppl milk price increase for Sainsburys aligned suppliers – from 1st June

This takes producers standard liquid litre price to 40.44ppl (Muller) & 40.32ppl (Arla)

04/05/22

AMPE sets a new 56.32ppl record as does MCVE at 51.98ppl

Both dairy market indicators continue to head North and break all records according to AHDB Dairy Analysts. See the table at the top of this bulletin. It’s worth reminding you what both mean AMPE (Actual Milk Price Equivalent) is an indicator of the factory gate value of a litre of milk used for butter and skimmed milk powder MCVE (Milk for Cheese Valu

04/05/22

Muller announces additional investment in the UK coupled with plans to expand both domestic and export demand for British Dairy Products

Muller has announced further plans to bolster its range of products with increased production of extended life milk products at its Droitwich factory in addition to expanding its UK butter manufacturing and upgrading its yoghurts & desserts facilities at Market Drayton. This is part of a 5-year investment with the clear focus on both the UK domestic market, including displacing imports, as well as exporting British Dairy products to the EU and beyond.

03/05/22

GDT crashes by 8.5%

Today’s GDT Auction has crashed back a massive 8.5% in only two weeks to average US $4419 tonne. This is the fourth consecutive drop and must now be a concerning international trend and its hoped the key reason is connected to Shanghai Port lockdown. Total quantity sold 25,163 tonnes to 107 winning bidders out of 132 participating bidders. Notable movements were Butter down 12.

03/05/22

4ppl minimum price increase for Freshways suppliers as they are the first to announce a 44p liquid standard litre price

Freshways are the first UK milk processor to declare a minimum 1st July farmgate milk price of 44ppl with the aim to increase this to 45ppl by July 1st depending on the markets in particular the cream price. No one can fault their ambition and laying a 1st July marker in the sand at 44p is to be applauded. But will 44ppl be enough to spark drive and enthus

29/04/22

1.5ppl Milk Price increase for Muller Direct suppliers – from 1st June

This increase takes producers standard liquid litre price to 41.5ppl which includes the 1ppl Muller Advantage premium.

29/04/22

1.5ppl Milk Price increase for Muller Direct Organic suppliers – from 1st June

This increase takes producers standard liquid litre price to 49.5ppl which includes the 1ppl Muller Advantage premium.

29/04/22

1.75ppl Milk Price increase for South Caernarfon Creameries members - from 1st June

This increase takes producers standard manufacturing litre price to 41.75ppl. In addition, South Caernarfon Creameries have increased their annual member bonus from 0.6ppl to 0.7ppl which will be backdated to April 1st

28/04/22

5ppl chart topping milk price increase for Saputo (AKA Dairy Crest) suppliers – from 1st June

This is possibly the largest increase from a processor for which credit needs to be given to the part played by the producer organisation DCD in negotiating this increase. This increases producers manufacturing standard litre price to 43.75ppl and based on a liquid standard litre to 42.19ppl

28/04/22

The market

There have been some spot loads of milk traded at under 40ppl due to processor breakdowns and bank holiday surpluses however putting those events to one side under normal circumstances, spot milk continues to trade around 42ppl at what is peak production.

27/04/22

3.77ppl milk price rise for Arla Directs – from 1st May

On this occasion Arla have temporarily abandoned the 30 day voluntary code compliant price change notification and announced a 3.77ppl increase from Sunday of this week which will be welcome news to the farmer involved including Sainsburys & Tesco aligned producers. This increases the current April liquid standard litre price from 35.35ppl to a very competitive 39.