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.

Arla will pay its former members its entire 2018 net profit of 290 million Euros/£257 million.

This will amount to an additional 2.3 euro cents per kg/milk or 2.07ppl for its 11,200 European members on all milk delivered. UK wise Arlas revenue from retail and Food service was up 3.3% to break the £2 billion barrier (2017 £1.9 4 billion). Without doubt when you sift through all of the numbers it's Arlas huge basket of branded products on offer to the UK consumers which are driving these results.

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0.9ppl Arla Organic member milk price reduction- from 1st March

This reduction still leaves Arla winning at Top Trumps and results in an organic standard manufacturing litre price of 43.55ppl and based on a liquid standard liquid litre 41.85ppl. In the last bulletin we confirmed that Omsco had reduced its March producer milk price by 1ppl. Based on a standard liquid litre this result in a 41ppl price.

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Pattermores to stand on for April milk payments

The standard liquid litres will remain at 28ppl and based on standard manufacturing litre 28.93ppl  

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Barbers cheese to stand on for a third consecutive month

For a third month Barbers standard manufacturing litre price will remain at 29.13ppl and based on a standard liquid litre 28.09ppl.i

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Meadow Foods to stand on for March milk payments

This means Meadow have held their producer price for February and March at 27.5ppl for a standard liquid litre.

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Dairy Crest to stand on for April milk payments

The standard manufacturing litre price will remain at 29.9ppl and based on a standard liquid litre 28.82ppl.

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Muller to stand on for April will be a huge relief to its suppliers (PRODUCER NOTIFIED)

Following last months 1.25ppl shock March milk price reduction Muller farmers will be pleased with the news that their will be no milk price reduction for April deliveries. The Muller liquid standard litre price for March & April is 26.75ppl including the 0.5ppl premium paid in arrears and without that premium its 26.25ppl. The equivalent March price for Arla members (see above) is 29.

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Arla maintain their leading position by holding producer prices for a 2nd consecutive month

Arla will maintain its conventional member milk price at 30.24ppl based on a manufacturing standard litre and 29.07ppl based on a standard liquid litre.

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0.8ppl milk price reduction for suppliers to Paynes Dairies – from 1st March

This results in a standard liquid litre price of 26.7ppl

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England & Wales Dairy Farmer decline warning

AHDB dairy are suggesting the Food Standards Agency claim that 222 dairy farmers representing 2.4% have exited the industry in the past four mouths should be “treated with caution”. Evidently the FSA often rely on Red Tractor data to identify farmers who have ceased production and that is not as timely as it perhaps should be and tends to be an accumulation over many months.

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Arla 10,000 plus members in 7 countries – one contract

Arla are starting to sign over 10,000 members to one common milk supply contract which will apply to its Co-op members in GB, Germany, Holland, Belgium, Sweden, Denmark and Luxemburg. The new contract will mean equal rights, terms, rules and obligations for all. Signing the new contract will be compulsory for any member who wishes to supply Arla and the deadline for signing is 30th April 2019.

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Muller to fix its lack of profitability

Muller are embarking on a £100m cost saving exercise called project Darwin which on the face of it will come from activities beyond the farmgate which milk supplying farmers will be pleased to hear. The project is expected to be completed with 2 years of starting and is already in train. It’s a big project and will cover logistics, back office, administration, processing and some of Muller’s customers could find they are axed if their business to Muller is loss making.

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