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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.}

07/12/21

3.106ppl milk price increase for Cotteswold (Liquid) suppliers – from 1st January PRODUCER NOTIFIED

The resulting liquid standard litre price is TBC

03/12/21

34ppl all time record New Zealand farmgate milk price forecast

Fonterra has revised its forecast milk price again and the latest means an all-time midpoint forecast Farmgate milk price of 33.82ppl paid on all litres delivered in this current milk year! The forecast is a low of 32.65ppl ($8.40) high of 34.99ppl ($9.00) midpoint of 33.82ppl ($8.70) This smashes the 2013/14 season record payout of $8.

03/12/21

3.75ppl total milk price increase for Arla Directs – from 1st December

Hot on the heels of the Arla member 1st December price increase comes a similar and additional 3ppl increase for the Arla Directs which impacts on the Tesco and Sainsburys aligned farmers. In making this announcement Arla have dispensed with the code compliant 30 days’ notice a move others would do well to note instead of using it as an excuse. In addition, on the 29th October Arla declared a 0.

03/12/21

3ppl milk price increase for Pattemores (liquid) – from 1st January

This increases producer’s liquid standard litre price to 33ppl and based on a manufacturing standard litre price to 33.98ppl

03/12/21

2ppl minimum milk price increase for Lanchester Dairies (liquid) suppliers – from 1st January PRODUCER NOTIFIED

This increase takes producers standard liquid litre price to 31ppl and the 75 or so farmers who supply Lanchester will need the minimum 2ppl to double to 4ppl given they have received a painful very low milk price for a long time. Connected to this there is evidence that Lanchester increased its doorstep prices by 3p pint (1.7ppl) from 29th November which sounds on the low side.

03/12/21

0.23ppl Sainsburys cost of production model increase criticised as 33.1ppl is muted

The word on the street is that the Sainsburys Dairy Development Group cost of production (COP) model is only increasing by 0.23ppl resulting in a liquid standard litre price of only 33.10ppl The problem is the Sainsburys model, as overseen by Kite Consulting, tracks back 6 months on most inputs with fertilizer tracking back 12 months and fuel 3 months. But Sainsburys farmers have exceptional bills to pay now.

03/12/21

Who’s who of The Rest

The rest is essentially a handful of second tier liquid and cheese processors some of whom are clearly struggling to push through required increases leaving their farmers well short of the main pack. Will they all survive and will those who do survive retain suppliers and continuity of supplies?? Unbelievably two farmers are claiming they have recently received a visit from a new processor offering them a brown envelope from a big suitcase of cash as a sign on fee/inducement.

03/12/21

Joseph Heler cheese farmers feel short changed

Following our posting of a 1ppl 1st December price increase plus a further 1ppl 1st January price increase from Helers cheese three farmers have been in contact to express to Ian how disappointed they are. Today one commented that the 1st January Heler standard manufacturing litre price comes in at under 32ppl and the firm should now follow Muller and revisit its January price increase.

03/12/21

Creamline

Suddenly Creamline (liquid) farmers are stirring and hitting Ian’s radar having recently seen a 1ppl increase resulting in a liquid base price of only 29.58ppl from 1st December. All eyes are on them for what will be a late 1st January price increase to see if they will hit the 33p plus mark.

03/12/21

Cotteswold (liquid)

have around 70 producers and the claim from one person is that all staff and farmer supplies have been gagged from passing on any farmgate milk price information to the likes of Ian Potter and if they do, they risk losing their contract. Even its hauliers/drivers have allegedly been gagged from discussing spot milk movements. So, if any Cotteswold supplier or indeed a representative would like to email any details to Ian by all means contact him direct ianpotter@ipmsltd.

03/12/21

4ppl surprise additional payment from Lidl to Muller Directs

Just when a few Muller suppliers were gnashing their teeth and feeling fairly sick over the 3-year fixed price 29ppl deal they signed with Lidl, comes the surprise news that Lidl have agreed to pay an additional 4ppl from January 1st to take the deal to 33ppl. The Lidl fixed price offering started in May of this year and saw around 200 Muller direct farmers commit to an average 45% of their output for the 3 year period.

03/12/21

3ppl milk price increase for Muller Direct Suppliers – from 1st January

The Muller commercial team have been quietly beavering away in recent weeks and having announced a 2ppl 1st January increase on 18th November have today increased that to 3ppl to put them back in the mix. For sure most MD farmers will likely agree Muller have responded to the surge in costs and are now delivering for their 500 or so Muller direct farmers. Coupled with the extra 4ppl from Lidl on the fixed price contract it probably confirms Muller are pushing as hard as anyone for increases.