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.

30.54ppl Defra average UK farmgate milk price for November

This is a 2.2% increase on the 29.87ppl recorded in November 2019 (+0.67ppl) but down from the 31.6ppl recorded in November 2018. 

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1ppl Milk Price Reduction for Arla Members (Conventional and Organic) – from 1st January

Whilst this reduction is unwelcome at a time of year when it’s supposed to be goodwill to all men (and women) it’s certainly one which hasn’t come as a complete surprise.  The Covid19 and Brexit combination are the real reasons for this announcement not helped by the fact that milk volumes across the EU are strong and as well as recent falls in Cream and Cheese values.

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Cream Values plummet by 5ppl in hours

Last night’s announcement that freight lorries cannot cross the sea or use the Eurotunnel caused cream values to plummet.  Bulk cream values in October averaged £1.52 (worth 16ppl to a liquid processor) in October according to www.milkprices.com. Prices have been slipping and last week deals were done at around £1.25 (worth 12.8ppl) but by the end of last week slid to a range £1 (worth 10.

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January Updated Milk League Rankings

Below is a league table based on www.milkprices.com standard litre prices for 1st January 2021. Those highlighted in yellow are the 1st December prices with the relevant purchasers 1st January farmgate milk price still to be declared. 

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Potters Milk League Rankings

Below is a league table based on www.milkprices.com standard litre prices for 1st January 2021. Those highlighted in yellow are the 1st December prices with the relevant purchasers 1st January farmgate milk price still to be declared. Most are liquid processors who are watching the slide in cream prices in addition to the little matter of the last-minute Brexit negotiation.

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0.5ppl Milk Price Increase for Suppliers to Belton Farm – from 1st January

This increases producers standard manufacturing litre price to 28ppl and based on a liquid standard litre 27.25ppl.  

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0.25ppl Milk Price Increase for First Milk Members – from 1st January

This increases producers standard manufacturing litre price to 28.93ppl and based on a liquid standard litre 28ppl.  For its Haverfordwest Creamery Tesco Cheese Group the 0.25ppl increase results in a manufacturing standard litre price of 30.43ppl.  In addition, First Milk have confirmed to members that the 0.5ppl member premium will continue for the forthcoming milk year commencing 1st April 2021.

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0.27ppl Milk Price Increase for Sainsbury’s aligned producers – from 1st January

This increase will apply to Muller and Arla aligned suppliers. This takes the Muller SDDG suppliers standard liquid litre price to 31.12ppl and for an Arla supplier to 31ppl.

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Saputo to Stand On until 1st February

This maintains producers www.milkprices.com standard litre price at 29.15ppl and based on a liquid standard litre 28.11ppl. Note until April 1st Saputo have agreed a minimum guaranteed floor price at this level.    

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GDT Auction result bounces up 4.3% and farmgate milk price forecast is up to 27.5ppl

Last Tuesday’s auction saw the average price jump by 4.3% to average US $3261 per tonne, the largest increase since July.  Prices for all 8 products auctioned rose with notable movements:  WMP up 5.0% to average US $3182 tonne  Butter up 3.8% to average US $3986 tonne SMP up 3.6% to average US $2889 tonne Cheddar up 2.4% to average US $3734 tonne Hot on the heels of the auction came a price revision from New Zealand Co-op Fonterra that the current years ex-farmgate milk price pay-out range of 6.

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Muller UK Losses in Liquid Still a Problem

Muller UK and Irelands financial results for calendar year 2019 show a loss of £76 million, which whilst less than the £100 million recorded in both 2017 and 2018 is still an eye watering number.  Total revenue for the year was down to 1.9 billion (1.93 billion 2018)  Mullers 2019 operating loss prior to amortisation and one off charges totalled £65.6 million compared to lower comparable losses totalling £17.

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Producer Numbers Down

GB dairy farmer numbers have fallen by 4.7% or 410 farms in the past 12 months to the current level of 8310 farms and according to AHDB dairy the average milk output per farm has risen to 1.5 million litre. 

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