Dairy Industry News and Features

Dumped Milk Collection

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.

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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Grahams Dairies renew its supply contract with Aldi

Grahams Dairies of Scotland have agreed a 5 year extension to its contract with Aldi to supply 85 Scottish Aldi stores with a range of products made from Scottish milk including milk, butter, yoghurt, creams etc. The deal is worth North of £55 million and continues a partnership between the two businesses which started in 2010. The contract is the largest Grahams have agreed.

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Belton Farm to hold its producer milk price for March

This means until 1st April the Belton standard manufacturing litre milk price will be 28.75ppl and based on a standard liquid litre 28ppl.

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First Milk to hold its Members Milk Price for March

This means First Milks members manufacturing standard litre price remains at 28.43ppl and based on a liquid standard litre 27.5ppl.

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0.75ppl milk price reduction for suppliers to Grahams Dairy Scotland from - 1st March

Producers supplying Grahams received letters this morning notifying them of the 0.75ppl reduction which results in a standard liquid litre milk price of 26.75ppl.

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0.75ppl milk price reduction for suppliers to Wensleydale Creamery – from 1st February

This is highly likely to be the final February 1st price change which was notified to producers at the end of January, The result s a standard manufacturing litre milk price of 28.7ppl and based on a standard liquid litre 27.75ppl.

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1ppl milk price reduction for suppliers to OMSCO – from 1st March

The price change will affect 250 OMSCO supplying farmers and is a direct reflection on the challenging uncertainties OMSCO face as a no deal Brexit looms closer to reality. In addition members have been notified it is unlikely there will be and 13th payment for the 2018/19 milk year. At the same time the Co-op is also introducing an A & B milk pricing mechanism in a bid to limit the impact of the additional litres they have to handle both in terms of increasing production and in the event OMSCO’s successful dairy product exports come to a sudden halt on 27th March.

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1.25ppl milk price reduction for suppliers to Pensworth (liquid) – from 1st March

This result in a standard liquid litre price of 26.35ppl.

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GDT bounces up again by a further 4.2%

Tuesdays GDT Auction saw the average all products price up a further 4.2% which is its 4th consecutive rise and follows hot on the heels of rises of 2.2%, 1.7% and 2.8%. This is yet more encouraging news to emphasise the necessity for farmgate milk prices to at least stabilise from March 1st at the latest. In less than two months the average price has now bounced up by 12% from $2727 to average $3057 tonne.

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0.5ppl milk price reduction for suppliers to Belton Farm (Cheese) – from 1st February

This results in a standard manufacturing litre price of 28.75ppl and based on a standard liquid litre 28ppl.

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