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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 the team at Ian Potter Associates 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 Lydia Clare 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.}

14/02/23

4.5ppl milk price reduction for suppliers to Meadow Foods – from 1st March

This reduction results in a manufacturing standard litre price of 41.6ppl and based on a liquid standard litre price to 41ppl on the A litres.

10/02/23

December average farmgate milk price stands at 51.51ppl

DEFRA calculations put the average farmgate milk payout for December at 51.51ppl for the 1.238 billion litres produced in the UK which in itself was an increase of 3.2% on November 2022 production and 1.7% ahead of December 2021 production. Total UK milk output for the calendar year 2022 was down 0.5% on 2021 testimony that the old addage of 1% less makes a huge difference to the price of milk, oil or any product just as 1% extra production has the opposite effect.

10/02/23

Arlas 2022 global results are described as solid in a volatile year

Arla has released its 2022 financials which as expected are solid but effectively come with a wealth warning. During 2022 Arla succeeded in delivering a leading but necessary European member milk price which increased by 40.5%. In addition, an extra 2.2 euro cents (2ppl) in total to be paid out to Arla members. During 2022 branded sales declined in volume terms by 3.

08/02/23

5ppl milk price reduction for suppliers to Wyke Farms (cheese) – from 1st March

This reduction results in a manufacturing standard litre price of 44.93ppl and based on a liquid standard litre 43.4ppl. In announcing the price reduction Wyke have confirmed on April 1st a further price reduction will happen and that whilst Wyke do not operate A&B pricing or similar it, like most others, anticipate surplus spring milk to trade in the 20p range or lower.

07/02/23

GDT up 3.2% - it’s a positive step

Todays GDT Auction saw average prices increase by 3.2% to average US $3456 tonne. Todays total tonnage sold amounted to 32,582 tonnes (31,478) with the number of participating bidders increasing to 166 (164) and successful bidders sneaking up to 116 (114). (Figures in brackets are from the 17th January auction which was as near as could be a stand on price).

07/02/23

5ppl milk price reduction to Joseph Heler (cheese) suppliers – from 1st March

06/02/23

Average EU equivalent farmgate price stands at 32.4ppl

Back in November this bulletin highlighted the independent German IFE had calculated the average EU farmgate price of milk using current recognised SMP and butter prices collated from across Europe’s big three producers (Holland Germany and France) as equivalent to a UK liquid standard litre of 40.55ppl. This week that same calculation has reduced to 32.4ppl (34.

06/02/23

Dutch cheese processor cut farmgate milk price by 7.55 euro cents – from 1st February

This converts to a liquid standard litre price of 44.52ppl (47.47ppl if all bonuses are achieved) and based on a manufacturing standard litre 46.38ppl (Maximum 49.33ppl with all bonuses) The commentary from DOC behind the cut is that a drop in demand from customers has necessitated sales of surplus product onto international commodity markets at lower prices.

03/02/23

Today – 23 milk price drops and without doubt more to follow in a months time. It’s time to buckle up and cut milk output wherever possible.

03/02/23

5ppl milk price reduction for suppliers to Lactalis (Fresh Milk Company) cheese – from 1st March

This reduction results in a manufacturing standard litre price of 43.49ppl and based on a liquid standard litre 41.81ppl.

03/02/23

2ppl milk price reduction for suppliers to Muller Direct Organic – from 1st March

This reduction results in a liquid standard litre price of 53ppl including the 1ppl Muller Advantage Premium.

03/02/23

3ppl milk price reduction for suppliers to Belton (cheese) – from 1st March

This reduction results in a manufacturing standard litre price of 44.05ppl and based on a liquid standard litre 43.3ppl.