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 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.

Its stand on for April for all other Milk Purchasers

Unless you inform us otherwise.

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AHDB’s ‘We get balanced’ Campaign records positive results

The results of this latest generic campaign after the first three months are very encouraging with clear evidence consumers are viewing the campaign and supporting the balanced diet message. The total spend on the campaign in January and February was £1.5 million (partly funded by dairy) and aimed to emphasise the role dairy and red meat play on a healthy balanced diet.

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New CEO for AHDB

Tim Rycroft will be the new CEO of AHDB starting on the 31st of August. The premature departure of Jane King means temporary CEO Ken Boyns will be in place for the 5 month period holding the fort. Mr Rycroft is presently the CEO of the Food and Drink federation and is reported to have an excellent CV. All eyes will be on him to determine whether he is coming in as the Paramedic or The Funeral Director because for sure AHDB faces survival challenges.

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First Milk rolls out its 2040 net zero target roadmap

First Milk has declared a range of sustainability projects at both processor and farmer member level.   One of the projects will involve the UK’s first field by field soil carbon recoding which it claims to be the first in the world.   It’s a precise and onerous exercise involving First Milk, Nestle and Agricarbon and some expensive state of the art machinery.

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The milk taps are heading for full bore at speed with spot market at 22ppl and falling

We are nowhere near peak production but suddenly, despite the relatively cold and blustery weather a flush has come early and taken most by surprise.  Several liquid processors are understood to be literally drowning in milk and any processors without any balancing facility are both nervous and treading water.  Yes, the underlying EU and global markets are relatively good, but for some the anticipated surge in ex farm volumes coupled with farmer expectation, mainly driven by strong cheese processor and Arla farmgate prices could be the tipping point particularly for those in the fragile middle ground and some brokers with limited processing capacity.

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34 Muller Farmers are given 12 months’ notice to find a New Milk Buyer

Muller are the latest of a list of predominantly liquid milk purchasers to give contracted farmer suppliers notice as part of its housekeeping spring clean-up.  The 34 farmers produce an average of around 1.2million litres each, circa 40 million litres in total and will leave Muller on April 1st 2022 at the latest.  Reasons for their selection are in line with those given by other milk purchasers, including failure to meet milk quality and or high enough farm standards.

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Westbury at 50% Capacity

Unfortunately, one of the two driers at Arla’s Westbury Plant is out of action due to a breakdown but is expected to be back up and running by Thursday at the latest.  Arla are temporarily diverting milk to other factories and processors, so the pressure is on but it could be much worse had the breakdown come at peak production. As it is, Arla and cheese makers close to Westbury appear to have balanced the surplus milk without having to sell any on the spot market, which is a great result for Arla given the quantities involved and the fact the spot market is down at 22ppl.

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1ppl Milk Price Reduction for Suppliers to Lanchester Dairies Producers claim is a Contract Breach

Given the strength of March markets, the jaw dropping 1ppl milk price cut for suppliers to Lanchester is brutal and allegedly, takes producers April standard liquid litre price to under 25ppl making it one of the lowest and potentially the lowest farmgate price in the UK.  It’s a fact the April 1st price  gap between the best at over 30ppl  predominantly driven  by Arla and the bottom, now at under 25ppl, is worryingly wide and getting wider.

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Surprise 1.5 Euro Cents (1.4/1.3ppl) April Milk Price Increase for Arla Members takes them to Over 30ppl

Ian cannot recall an April milk price increase of this magnitude which is some achievement and clearly indicates for Arla the market has turned north.  The increase will be paid to both Arla’s Conventional and Organic suppliers and results in the following www.milkprices.com standard litre prices.  The dynamics of the increase are identical to the GDT surge in prices namely; strong demand for dairy from China in addition to increasing cream and butter prices, plus lower EU Milk output.

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Saphir Faces a Crisis as he is nicknamed the AHDB Undertaker

The good ship AHDB is in turmoil and looking like it could be heading for the rocks under the captaincy of Nicholas Saphir as it records its second NO vote from another levy paying sector. The latest blow, which was no surprise, is that 66.4% of the 1196 potato growers who voted said no to the continuation of the levy. This comes only a month after an overwhelming 61% of voting Horticulture levy payers said No.

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Jane King CEO AHDB jumps ship 6 months early

Another fact worthy of an explanation is how come in October 2020 AHDB announced that Jane King would step down as CEO after a six-year spell at the end of September 2021 having served 12 months’ notice. It turns out she leaves next week on March 31st, 6 months early! Was Jane given the push or has she joined others, like Tom Hind (formerly Tesco Tom) who left last September and was one of the first to hit the exit button.

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Arla Set to Close its North Cornwall Soft Cheese Factory

Arla has announced it has commenced consultation with 37 staff at its Trevarrian soft cheese factory, which is supplied with milk from eight local Arla Members.  The creamery is on the North Cornish Coast between Padstow and Newquay and produces Cornish Brie’s and Camembert’s. The Cornish County Larder based soft cheese business started life in 1996.  In January 2011, under the direction of CEO Neil Kennedy, Milk Link purchased the creamery before a year later it was transferred to Arla as part of the “merger” in 2012.

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