Dairy Industry News and Features

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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.

Market Snap Shot

The cream and spot markets continue to nudge slightly North, with Cream now trading at around £1.55 kg with spot milk rising to 30/31ppl. A £1.55 kg cream price according to AHDB Dairy is worth 8.8ppl to a liquid processor assuming an average UK butterfat of 4.14% (current 12 month rolling average). Note in April cream values were 90p kg worth only 5.1ppl to a liquid processor.

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Arla’s member milk price to stand on for September

Arla’s conventional and organic milk prices for September remain unchanged. This translates to a conventional manufacturing standard litre milk price of 29.26ppl and based on a liquid standard litre 28.17ppl. For Arlas organic members on organic contracts, the manufacturing standard litre remains at 37.62ppl and based on a liquid standard litre at 36.21ppl.

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1ppl Milk Price increase for suppliers to Crediton Dairy (Liquid) - from 1st October

This increase takes suppliers standard liquid litre milk price to a healthy 28.5ppl including the 0.5ppl Metrics bonus.

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0.5ppl Milk Price increase for members of First Milk - from 1st September

This increases members manufacturing standard litre price to 28.15ppl including the member premium. For those members aligned to the Tesco cheese group the increase takes their manufacturing standard litre price to 29.65ppl. Based on www.milkprices.com First Milks standard liquid litre the price increases to 27.25ppl.

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0.9ppl Milk Price increase for suppliers to Cotteswold (Liquid) – from 1st September

The claim is this will put producers Milk Price to 0.5ppl above its pre Covid level. The estimated standard liquid litre price is 25.5ppl and we are endeavouring to obtain an accurate benchmarked price from Cotteswold.

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Freshways to stand on until 1st October

This maintains producers liquid standard litre price at 26ppl following a 1ppl 1st August increase.

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GDT Auction prices decline for the third consecutive Auction

This Tuesday’s Auction recorded on average all products reduction of 1.7% to average US $3004 tonne and follows earlier falls of 5.1% (4th August), 0.7% (21st July) however the 7th July recorded a whopping 8.3% jump. The quantity traded this week was a factor with 33,331 tonnes sold. The only product to increase in value was SMP up +1.1% to average US $2,608 tonne.

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England & Scotland Milk Supply balance sheet

AHDB Dairy calculate that during 2019/20 England was 88% self sufficient in milk with 56% of farm output going to liquid and 19% to Cheese. Turning to Scotland during 2019/20 they calculate 18% of all Scottish on farm milk had to be transported to England for processing totalling 269 million litres. This equates to 9,440 x 28,500 litre loads a year or 26 loads every day of the year.

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51,000 Cows less as GB milking herd decreases

According to AHDB Dairy at July 1st GB dairy cow numbers reduced by 2.9% (51,000 cows) to 1.68 million compared to the numbers recorded at 1st July 2019. Against this youngstock numbers have risen which is the first rise in numbers since October 2016. AHDB estimate 25% of GB Diary farmers had to cut milk output as a result of Covid19 and culling was an instant and effective way to cut production as requested by several liquid processors.

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Dairy response fund/Aid application window extended by 1 month

Any dairy farmers who qualify for the governments Dairy Aid who haven’t applied now have an additional month to apply with the new deadline of 11th September. The maximum award remains capped at £10,000 and the 174 applications received to the end of July are not even 10% of the numbers some initially trumpeted to be severely affected by Covid19.

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Cathedral City Cheese on sale in Canada

Saputo, who purchased the Dairy Crest cheese business its brands and Davidstow processing facility are now exporting the UK’s leading cheese brand Cathedral City to its motherland Canada where it is available in 500 stores. The good news is Cathedral City cheese is all made in Davidstow Cornwall from milk supplied by 350 local farmers. Many years ago, Ian had intelligence from down under that Dairy Crest were exploring the possibility of manufacturing Cathedral City there.

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Ornua Foods UK (First Milks partner) 2019 results were solid

Ornua Foods UK who market First Milks cheese output has released its 31st December 2019 results which were solid and consistent. Turnover up 10% to £354 million Pre Tax profit £4.1 Million (£6.8m in 2018) the reduction mainly due to investment in the business.

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