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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.}

08/04/20

Latest update on the dramatic downturn in Dairy

It’s those processors supplying the food service, schools, universities, restaurants, coffee shops, pubs etc who have seen their order books battered and cash flow predictions torpedoed. The picture is changing daily and at an unbelievable speed, for example in the past 4 days cream values have dropped by 20p kg to between 80 to 85p a deficit of almost 2ppl to a processor.

08/04/20

Current Solutions as collated by Ian

The goal is to remove the surplus distressed milk from the market immediately. Please remember this milk is sloshing around as a direct result of the measures taken by government on a market which is unable to adjust at the speed the chaos has snook up on us. Ian is not suggesting the government was wrong in making the decision it did to close down the Food Service sector but it has to be pointed out that move has resulted in the current chaos.

08/04/20

A friendly warning to a handful of vocal farmers

Understandably, there are a number of farmers who are extremely unhappy with their milk purchaser and certainly one or two milk purchasers appear to be in the farmers firing line. Ian wishes to warn some farmers against crossing the line from being firm and requesting transparency to becoming a nuisance, particularly if they are geographically some distance from their milk purchaser and/or a farmer with a history of quality and farm assurance issues.

02/04/20

1ppl Price Rise for Muller Direct Farmers is a big surprise

This won’t be a popular comment, but Muller’s 1ppl price increase from May 1st is undoubtably a big surprise, so much Ian had to read the Muller 31st March release twice! It is likely to be the only milk price increase for a long time and given the market conditions outlined below short lived. However, in the release, Muller’s Operations Director, Rob Hutchinson comments “We have a resilient supply chain and are well placed to deal with it “.

02/04/20

Barbers (cheese) to stand for a 7th Consecutive month until at least 1st June

This maintains Barbers standard manufacturing litre price at 27.79ppl and based on a standard liquid litre at 26.8ppl.

02/04/20

Saputo (AKA Dairy Crest Davidstow) stand on until at least 1st July

This was agreed back in January and maintains the minimum standard manufacturing litre price at 28.7ppl and based on a standard liquid litre the minimum floor price 27.62ppl. Once again, the stability it delivers should be applauded by all involved in what was forward thinking.

02/04/20

Lactalis (AKA Caledonia & The Fresh Milk Company) to stand on until 1s July

Lactalis will hold its supplier milk price for the next quarter until 1st July 2020 at a minimum floor at 27.61ppl based on a manufacturing standard litre and 26.5ppl based on a liquid standard litre assuming the market remains normal and there are no seismic up or down movements.

02/04/20

Crediton Dairy to Stand on for May

This maintains the standard liquid litre price at 27.5ppl.

02/04/20

South Caernarfon Creameries (Cheese) to stand until at least June 1st

This maintains a manufacturing standard of 27.28ppl based on a standard litre price of 26.34ppl.

02/04/20

Wensleydale Creamery (Cheese) to stand on until at least May 1st

This maintains a manufacturing standard of 27.75ppl and a liquid standard litre of 26.8ppl.

02/04/20

Pensworth Dairy (Liquid) to stand on until 1st May

This maintains their liquid standard litre price at 25ppl for those producers who participate in Pensworth’s new animal welfare standards for others who do not qualify it will be 24.5ppl Pensworth have written to producers outlining how Covid19 has battered their budgets especially given their customer base amongst others includes 230 hospitals, 1700 care homes as well as 100,000 plus doorstep customers many of whom are elderly and self-isolating.

02/04/20

Wells Farm Dairy Stand on but under constant review – Producer Notified

In a letter to producers dated 23rd March, Wells have confirmed they have seen the business hit hard consequently have farmgate milk prices under constant review on almost a daily basis.