Dairy Industry News and Features

Dumped Milk Collection

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.

Sainsburys and Tesco buying very cheap milk which will make it easier for both to continue to sell cheap milk

Farmers aligned to both Sainsburys and Tesco should be furious and demanding a fair price for their milk from both retail giants.   Tesco have announced a liquid standard litre price of only 42.35ppl from 1st July and Sainsburys have just announced via its monthly review bulletin 41.7ppl also from the 1st July, which is very cheap milk when most other farmers will receive a market price of 46ppl.

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Are some milk processors returning to type and offloading cheaper milk

Processor factory breakdowns happen regularly and during peak production in May are more of a headache to contend with. When one of the big guns has a breakdown, milk is diverted to other processors and that has resulted in many reaching maximum capacity on more than one day. Result spot milk occasionally falling below 40p and as low as 35p ex the sellers factory.

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Milk processors either “Go big or get crucified”

Yes 4ppl July 1st increases to take standard litre prices to circa 46ppl plus one needed and should be commonplace. As one processor commented we either pay it to keep pace with the likes of Arla or get crucified. Kite consulting back in early April stated milk prices need to be over 50ppl to reverse the continual drop in GB milk output.  Even if 50ppl plus prices materialise this is a juggernaut to turn it around and it will be into 2023 before that can be reversed to fill the void in milk output.

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Peak Production and April both down on 2021

According to AHDB Dairy GB peak production was on 6th May at 37 million litres a reduction of 2.5% on the 2021 peak which is equivalent to over 1 million litres on the day. April production was down 3% equivalent to 33.5 million litres or 1 million litres day. At present May daily deliveries are running at 2.8% below 2021 a reduction of over 1 million litres day which is a regular feature and trend.

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4ppl milk price increase for suppliers to Wells Farm Dairy (Liquid) – from 1st July

This takes producers standard liquid litre a shade over 46ppl

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4ppl milk price increase for suppliers to Yew Tree Dairy (Liquid) – from 1st July

This increases producers standard liquid litre price to 46ppl

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4ppl milk price increase for suppliers to Grahams Dairies (Liquid) – from 1st July

This increases producers standard liquid litre price to 44ppl

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4.32ppl milk price increase for Arla (Organic) Direct Suppliers – from 1st July

This increase takes producers liquid standard litre price to 49.67ppl

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4.32ppl milk price increase for Arla (Conventional) Direct Suppliers – from 1st July

This increase takes producers liquid standard litre price to 43.44ppl and based on a manufacturing standard litre price increase to 45.21ppl

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Incredible 4.49ppl further increase for Arla's Conventional and Organic members means a total of over 8ppl in one month.

Last month when Arla announced a record breaking 4 euro cent 1st May increase equating to 3.58ppl many believed this would be the record.  Today Arla have top trumped by 25% with the announcement from 1st June that that their conventional and organic members milk price will increase by further 5 euro cents equating to 4.49ppl. This means in the space of one month Arla’s members milk price has increased by 8.

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1.25ppl milk price increase for suppliers to Joseph Heler (cheese) – from 1st June

This increases producers manufacturing standard litre to circa 42.55ppl

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GDT drops a further 2.9%

Tuesdays GDT Auction results saw the average price of all products fall for the 5th consecutive time to average US $4432 tonne.  Note at the last auction average prices fell 8.5%. The quantity sold at this week’s auction was 24,285 (down 3.5% on the 25,163 sold two weeks ago).  In addition, the number of winning bidders fell from 107 to 100 however the number of participating bidders jumped from 132 to 159 which is encouraging.

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