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.

1ppl Milk Price Reduction for Suppliers to Payne’s Dairies – from 1st October

This takes producers standard liquid litre price to 25.75ppl.

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Freshways (liquid) to stand on/hold its producer milk price for October

This means the existing liquid standard litre price of 25ppl will continue. Staying with Freshways they have recently written to customers pushing through a 4ppl price increase from early September which is good news.  One of the reasons for Freshways 1st September 2ppl producer price cut was a fall in cream values.  The price of cream has recently increased by 2ppl (see below) and coupled with the fact Freshways have presumably achieved a 4ppl customer increases farmers could be in for a price increase.

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Sainsbury Tender triggers several farmers fury from those put on a Bosman from Muller to Tomlinson’s

Sainsbury’s held its third Dairy Development Group (SDDG) aligned farmer meeting near Knutsford, Cheshire yesterday (18th) and unlike the previous two SDDG meetings this week it was far from plain sailing with one side of the room having smiley faces and the other side red steaming faces as blood pressure rose.  The free movement/transfer of SDDG farmers is the big bone of contention especially those in Cheshire who from 1st October 2020 will cease to be Muller SDDG producers and move on the dairy equivalent of a free Bosman transfer to Tomlinson’s Dairy in Wrexham, Wales.

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Medina loose out on all Sainsbury’s Business after only 3 years!

As part of the recent Sainsbury’s tender outcome Medina are set to loose all the business it has had for the past 2 years which will be distributed to Arla  and Muller from 1st October 2020 with Tomlinson’s literage  more or less remaining the same at circa 90 million litres. All of the Medina SDDG farmers will be moving on a Bosman to Muller or Arla. This is another bitter blow to Medina which is strongly rumoured not to be a price based decision by Sainsbury’s.

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The Outlook

The good news is that in the past couple of weeks cream values have risen by around 30p equivalent to over 2ppl in liquid value. The FCStoneMilkprices.comUKMFE forward prices point to firmer prices for both butter & SMP however the continual recovery in the value of sterling is cancelling out most of the uplift. Meanwhile both AMPE & MCVE continue to drift South and allowing for a 2ppl AHDB deliver/collection cost from the farm to the dairy results in a farmgate AMPE or 25.

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Interesting change at Freshways

According to Companies House Balvinder (Bali) Nijjar has had his Directorship of Nijjar Dairies Limited Terminated.  Maybe its part of a cost cutting exercise.

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Sainsbury’s & Tomlinson’s Special Edition

Tomlinson’s Liquid Dairy of Wrexham goes into Administration On Saturday evening around 33 direct suppliers plus approximately 39 (15%) of Sainsbury’s Dairy Development Group (SDDG) suppliers were told Sunday’s milk would not be going to Tomlinson’s for processing and its doors were closed. On Monday (yesterday) Pricewaterhouse Coopers were appointed as administrators.

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0.79ppl milk price increase for Sainsburys (SDDG) ALIGNED SUPPLIERS - From 1st October

This results in the following standard liquid litre prices Muller SDDG  30.94ppl Arla    SDDG 30.82ppl The change is partly due to the following cost of production movements on the three F’s.  Feed 10.34ppl (down0.11ppl), fertiliser 0.95ppl (up 0.04ppl) and fuel 0.78ppl (up 0.04ppl)

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0.90ppl Milk Price reduction for suppliers to Pattemores Dairy (liquid) from-1st November

This takes producers standard liquid milk price to 26.25ppl and based on a standard manufacturing litre to 27.12ppl.

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0.75ppl Milk Price reduction for suppliers to Barbers (cheese) –from 1st November

This takes producers standard manufacturing litre milk price to 27.79ppl and based on a standard liquid litre to 26.80ppl.

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0.75ppl Milk Price reduction for suppliers to South Caernafon Creameries (cheese) – from 1st November

This takes producers standard manufacturing milk price to 27.28ppl and based on a liquid standard litre 26.34ppl.

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0.63ppl Milk Price reduction for suppliers to The Fresh Milk Company Scotland (cheese) AKA Lactalis from 1st October

This is actually a quarterly floor price and means    for October, November & December the lowest price based on a manufacturing standard litre will be 27.61ppl and based on a liquid standard litre 26.5ppl

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