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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.}

24/04/20

2ppl milk price decrease for Pensworth Dairy suppliers from May 1st

This reduces the liquid standard litre price to 22.5ppl and to 23ppl for producers who participate in Pensworths animal welfare standards. Earlier in the month Pensworth temporarily extended its April farmer payment terms and in addition to this 2ppl cut it has now introduced A and B pricing. The May A price, based on 22.5ppl/23.0ppl (as above) will be paid on 70% of the milk supplied whilst the remaining 30% will be based on average market returns achieved in May for skim milk concentrate which recently has been trucked to Poland having been processed by Yew Tree.

24/04/20

Milk production down 2.4%

According to the DEFRA figures total UK milk production in March was down 2.4% at 1.297 billion litres and compared to 2 years ago its down 3.2%.

24/04/20

Dairy Partners farmers furious they are buying cheap spot milk

In a letter to its farmer suppliers, Dairy Partners (mozzarella cheese in South Wales) jaw dropping statement states “Our revised budget plans are based on farm forecasted volumes and if no action is taken then we will not be able to take maximum opportunity for low cost milk, which in turn would impact all our Direct Supply producers. Please therefore ensure you keep to your own forecasted supply volume over the coming months.

24/04/20

Countryfile interview for Sunday prompts a recalculation by NFU

Last weeks declaration to DEFRA by the NFU that “2000 dairy farmers are suffering severe financial pressure” appears to have been recalculated ahead of Tom Heaps investigation into the Dairy Industry expected to be shown on Countryfile. The figures were crunched and processors and their supplying farmers now categorised by the NFU into high, medium and low risk.

24/04/20

Statement made by Secretary of State for Environment and Rural Affairs, George Eustice, on Tuesday demonstrates he already has a grip on the true figures

An extract from his statement reads:- Coronavirus presents unprecedented challenges to the businesses we rely on to provide essential services which keep people safe – including food supply, water and waste. Many businesses in these sectors have benefited from Government schemes to support all businesses, including the Coronavirus Job Retention Scheme, Coronavirus Business Interruption Loan Scheme, and the Small Business Grant Scheme and support for the self-employed.

24/04/20

RABDF call for all UK COVID19 affected dairy farmers to complete their survey

The Royal Association of Dairy Farmers is calling on all Covid19 affected dairy farmers to complete its survey to enable it to collate the data and submit to government. For further details, click the link: https://www.rabdf.co.uk/latest-news/2020/4/20/calls-for-dairy-farmers-across-the-uk-to-submit-daily-accounts-of-losses

23/04/20

0.9ppl (1 Euro Cent) decrease for Arla members from May 1st

Arla are not immune from the worldwide effects of COVID19 but on the strength of this reduction, its product mix and ability to divert milk is greater than most. This results in a standard manufacturing litre price of 29.89ppl and based on a liquid standard litre 28.74ppl. The Arla member organic price has also decreased by 1 euro cent resulting in a standard manufacturing litre price of 38.

17/04/20

5ppl milk price reduction in only 12 days for Medina suppliers

Only 12 days ago Medina suppliers were given notice of a 2ppl milk price cut from May 1st. Now a further 3ppl reduction is coming, meaning a whopping 5ppl on May 1st taking producers liquid standard litre price to 20.75ppl. If that wasn’t enough pain, payments to farmers will be delayed by 21 days with the next payment to be made on the 4th May. In the letter dated 15th April, Medina claim spot milk price is 5ppl that day and cream is trading at 80p kg which is certainly not correct.

17/04/20

Freshways announce a 13-day backdated price cut and delayed payment terms

In a letter dated 11th April, the managing director of Freshways, Bali Nijjar, notified suppliers of changes backdated to 29th March, meaning a minimum 13 days retrospective notice. The changes included producers A price to be restricted to 60% of their current A volume/quota and from 29th March this will be paid at a liquid standard litre price of 24ppl (www.

17/04/20

Yew Tree Dairies solution is more transparent

In our 8th April bulletin, we reported that Yew Tree Dairies had temporarily reduced their A price by 2ppl to 23.5ppl from May 1st, having notified producers in advance on the 6th April in what could only be viewed as a very upfront detailed letter of the situation the Woodcock family face. Supplying farmers should value such transparency. The A volume litres to be paid at the standard price was reduced to 54% of each farms original volume from 15th April.

17/04/20

Market Update

10 days ago, spot milk was 5ppl or less and some farmers were told to dump full days collections with no contribution from their processor. Today, there is no one dumping their daily production and spot prices are 15/16p and cream has risen to 90p kg. In an article (www.milkprices.com) earlier this week reported gains in the futures markets including the average price of butter up for the first time in 5 weeks (+16 euros tonne), SMP up 53 euros a tonne from a 4 week down turn.

17/04/20

Paynes Dairies update suppliers on market conditions

Charlie Payne wrote to his producers a week ago to inform them of the current market his business faces and offering to update them all weekly with what is a very fast changing market. This should minimise any sudden surprises especially if the updates are comprehensive and is a smart PR move.