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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.}

02/06/20

1ppl milk price increase for some Freshways suppliers – from June 1st

In true Freshways style, the 1ppl will only be paid to those producers who signed the new Terms and Conditions, agreed to the 60:40 A and B price split and who haven’t tendered their notice. There are a number of Freshways suppliers who plan to quit within weeks but as we understand it, they will receive the 1ppl increase on any milk delivered post June 1st.

02/06/20

1.6ppl milk price increase on the A litres price from Yew Tree Dairy – from June 1st

This results in a liquid standard litre price of 25.10ppl on the 63% A litres, the remainder is paid on a B price.

02/06/20

Freshways still in the relegation zone but with others paying less

Freshways April milk price based on 60% A and 40% B price split resulted in a disappointingly poor average price of 20 to 21ppl with the B litres paid out at a shade over 10ppl. On top of that, 40% of the total due was paid yesterday June 1st with farmers claiming no firm date has been announced as to when the remaining 60% will be paid, however it is due by 15th June at the latest! However, others have remained under the radar with lower prices but unlike Freshways, they do not appear to have delayed farmer payments.

02/06/20

Freshways/Capital Milk deal hits a nerve cord

According to two farmer suppliers, some of the Freshways suppliers in the south of England who left to supply Capital Milk are now supplying Freshways on a better price and deal than Freshways direct suppliers are currently on. The farmers who moved to Capital saw their milk brokered to Muller but post Mullers decision to close its South East processing facility Capital have delivered the milk back to Freshways and fair do’s to Capital, the deal is allegedly better than the deal Freshways is giving its own suppliers under its new contract terms.

02/06/20

The Only Way Is Up Baby

With spot milk prices having risen to 27 – 28ppl and rising, the big question is when, in June not July, will those on a B price see it overtake their A price. It seems inevitable very soon and must shortly to be followed by A price increases from 1st July. The positivity in the market is almost electric and buzzing with excitement. Futures markets rising -www.

02/06/20

Meadow are the latest dairy processor to diversify into plant based

Meadows diversification project has been rumoured for a few months and is now confirmed as operating from Meadows Chester HQ. Processors across the globe are seizing the opportunity to provide non dairy based products in response to new consumer demand and Meadow have joined the movement. Some will see this as a betrayal, others will see it as a positive. Which would you rather have? A milk purchaser who is investing in diversification or one which is drowning in dirty water sticking to liquid milk? Meadow will continue to have Dairy processing as its core business.

02/06/20

Today’s GDT was a stand on

Todays auction saw the average all products index rise by a mere 0.19%. Notable movers were: Butter down 4.4% Cheddar down 5.3% SMP down 0.5% WMP up 2.1%

02/06/20

Muller cancel the request to reduce deliveries by 3%

Muller have cancelled their early April request for all producers (aligned, non-aligned and organic) to reduce supplies by 3% having reviewed volumes required against anticipated volumes.

20/05/20

Stand on June milk price for almost all Arla Members

Arla’s member milk price for both conventional and organic will remain at the following levels until July 1st. Standard liquid litre price 28.78ppl and based on a manufacturing standard litre price of 29.89ppl. Organic standard liquid litre price at 37.48ppl and based on a manufacturing standard litre price of 38.93ppl. In reality the June price has actually reduced by 1 Euro Cent however there is a 1 Euro Cent addition scheduled to start from June 1st as a climate check/change incentive.

07/05/20

0.61ppl deferred milk price reduction for Marks & Spencers aligned suppliers

The reduction has been delayed by 2 months until 1st June to assist the retailers 44 aligned farmers. From June 1st the M&S standard liquid litre price will reduce to a very healthy 31.72ppl. (source – www.milkprices.com)

07/05/20

0.5ppl milk price reduction for Wensley Dale Creamery (Cheese) from May 1st

This results in a manufacturing standard litre price of 27.25ppl and based on a liquid standard litre 26.3ppl.

07/05/20

0.5ppl milk price cut for suppliers to Dale Farm Cumbria from May 1st

This results in a liquid standard litre price of 25.14ppl.