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.

0.35ppl milk price reduction for Pattemores Dairy producers – from 1st June

This reduces producers liquid standard litre milk price to 27.65ppl and based on a manufacturing standard litre 28.57ppl.

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0.35ppl milk price reduction for Wensleydale (Cheese) producers milk price – from 1st May – PRODUCER NOTIFIED

Very last minute price changes are still around and this one reduces producers standard manufacturing litre milk price to 28.35ppl and based on a liquid standard litre to 27.4ppl.

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0.5ppl milk price reduction for Blackmore Vale Farm Cream from May 1st – PRODUCER NOTIFIED

This reduces producers standard liquid litre milk price to 28.2ppl

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0.75ppl milk price reduction for Barbers (cheese) producers milk price – from 1st June

This reduces producers standard manufacturing litre milk price to 28.36ppl and based on a liquid standard litre to 27.34ppl.

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0.75ppl milk price reduction for Grahams Dairies producers from 1st May

This reduces producers standard liquid litre milk price to 26ppl. In a letter to producers Grahams are upfront in declaring they are having to handle significant additional unplanned volumes which have necessitated the forward sale of 1 million litres of spot milk at 14ppl as well as 8 surplus artic loads having been sold on the 27th April alone!! Grahams report that 65% of its producers have increased milk production compared to 2018 levels and around 10 producers who are having the biggest impact are talking to Grahams on a 1:1.

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Muller set to reduce its product numbers by up to 40%

As part of its £100m cost cutting exercise, AKA project Darwin, Muller has announced that its current range of 835 UK milk and cream products from its six dairy processing facilities is set to be cut to around 500 In addition some customers who take small uneconomical deliveries will be given notice by Muller and delisted. According to an article in The Grocer Magazine by Kevin White Muller has also stood back from tendering for several supply contracts.

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Notable prices

Butter up       3.5% to average    US $6,126 tonne Cheddar up  1.4% to average   US $4,319 tonne SMP up         0.2% to average    US $2,462 tonne WMP down   0.7% to average   US $3,269 tonne

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GDT Auction stands firm with a slight uplift

Last weeks GDT Auction produced a small average all products price rise of 0.5% to average US $3447 tonne. The result was as anticipated with previous auction gains maintained. The slight upward movement is the 10th consecutive auction rise and the average stands at almost a 2 year high.

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0.45ppl milk price reduction for Muller Co-operative Group suppliers – From 1st May

This results in a standard liquid litre price of 29.56ppl.

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Wyke Farms (cheese) to stand on with its May milk price at 28ppl – PRODUCER NOTIFIED

Wykes standard liquid litre price will remain at 28ppl and based on a standard manufacturing litre 28.99ppl.

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Challenging issues for Arla One Contract sign up in mainland Europe but no issues raised with our NFU’s

As we rapidly approach the 30th April Arla one contract sign up deadline the news from Mainland Europe is some farmers and their representative organisations are unhappy with the new One Contract terms. The Danish dairy farmers Union LDM have appointed two lawyers who have studied Arla's One contract and terms, and both lawyers have issues which Arla will have to address or are addressing.

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Arla members stand on with its May conventional price at 30.23ppl

This is Arlas 4th consecutive member milk price hold keeping the standard liquid litre price at 29.06ppl and based on a manufacturing standard litre 30.23ppl. This is a welcome if not remarkable achievement by Arla and certainly puts more pressure on other processors who are finding current prices extremely challenging. During the past week spot milk has been regularly trading between 13 to 15ppl and the signs are pointing towards further weakening as milk production continues to increase.

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