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.

Transport drivers in very short supply with ex farmgate milk collections suffering.

The UK dairy industry, like all other businesses, is facing a serious shortage of vehicle drivers mainly due to fact that during the Covid lockdown, no new drivers came into the system due to no tests, plus the Brexit effect which has cut the supply of mainland Eastern European drivers.  The Covid and Brexit effect is estimated to have clocked up 100,000 missing lorry drivers with 30,000 HGV class 1 drivers lost due to the fact the examiners were all on furlough.

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Arla report a sold first half year financial result

Arla’s first six months financials have been released and are a solid set of results.   Total Arla Group revenue up 1.2% to Euro 5.44 billion Arla UK Sales up 3%   Branded sales continue to grow collectively up 13% with Cravendale sales up 10%, Bob +21% and Arla protein milk +34% Branded volume +5.6% (+10.4% in 2020)   Arla, like all others in the industry, recognise that current inflation will hit its cost base, particularly in energy, fuel, packaging and indeed staff recruitment (see below).

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Milk & More is no more for Potters

Milk & More were the Potter office & households doorstep milk suppliers until last Tuesday when it all went wrong. On Tuesday our 3 gallon a week plus glass bottle drop was missed and when Ian emailed M&M he received an ‘automated’ response saying they would respond within 3 days. However, 8 days later no explanation, no replacement delivery and no reply.   Exit Milk & More and enter local Arla farmers Alkmonton Dairy who seized the opportunity.

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0.87/0.9ppl Price Reduction for Arla Members – from 1st September

Arla members conventional and organic milk price will reduce between 0.87 and 0.9ppl (1 euro cent) from 1st September resulting in the following www.milkprices.com standard litre price.                                                                         Conventional                 Organic Liquid Standard Litre                                          31.

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Meadow Foods to stand on until at least 1st October

This maintains their producers standard liquid litre milk price at 29ppl

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GDT Auction price index turns North

Having recorded 8 consecutive auction falls, today saw a small glimmer of hope as average prices rose by 0.3% to average US$3,827 tonne for the reduced offering of 22,543 tonnes sold to 180 bidders of which 116 were successful. All we can hope is that the downward spiral has been arrested. Butter +4% to average US$ 4771 tonne Cheddar +2.8% to average US$ 4184 tonne SMP +1.

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1.59ppl milk price increase for M&S aligned producers – From 1st July

This takes the M&S Muller producers to a chart-topping liquid standard litre price of 34.7ppl. According to www.milkprices.com data this is knocking on the door of the all-time M&S record milk price of 34.84ppl paid in the autumn of 2013. The increase is attributable to on form cost increases.  

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Milk production brakes are on

With on form costs constantly rising, its little wonder the current AHDB dairy July GB output shows another fall of 2.2% coming in at 1.029 billion litres compared to: June 2021 1.066 billion litres July 2020 1.052 billion litres According to its latest data AHDB state GB daily deliveries are running 1.9% below the same week in 2020. Unless those still paying farmers under 29ppl on a liquid standard litre up their game they are likely to be the ones left short of milk.

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GB prices

Spot prices today were trading at a healthy 33p to 36p delivered to the purchasing processor.  With cream values up in the £1.60kg plus region and production down for the immediate future its looking like a steady ship.  Note haulage costs are rising and surplus milk is not cheap to transport.  

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Cotteswold (liquid) profits up to £2 million (+46%)

Cotteswold middle ground liquid dairy has reported a cracking set of year end financials with operating profits up from £1.36m to £1.99m and sales increased by 10% to £59 million.  

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Cheese exports to China & South Korea up

At a time when post Brexit dairy exports and imports to mainland Europe continue to be disrupted and hit very hard, its encouraging to hear that UK cheese exports to Asia and Oceania are up 17% on the 2020 figure. In 2020 China imported 64 tonnes of cheese from the UK and in the same period in 2021 that has rocketed to 467 tonnes.  Similarly cheese exports to South Korea have jumped from 53 tonnes to 165 tonnes.

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GDT drops for the 8th Consecutive Auction

Todays GDT Auction has recorded its 8th consecutive fall in average prices this time down 1% to average $3784 US per tonne for the 24,084 tonnes sold. The biggest drop was in the average price of whole milk powder   Notable movements were   Butter up 3.8% to average $4589 tonne SMP up 1.5% to average $3020 tonne Cheddar up 0.7% to average $4065 tonne WMP down 3.

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