Arla has announced that 169 jobs are under consultation in the UK as part of its 3 year calcium transformation programme. Today’s announcement will see Arla’s Llandyrnog Creamery close impacting on 97 staff, its Malpas cheese packing site close impacting on 43 jobs, closure of its Lockerbie cheese packing facility impacting on 14 jobs plus a further 15 roles at its Leeds HQ.
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Its not a good week for Arla globally with the news that 11 of its 33 supplying farmers to its Hollandtown, Wisconsin USA plant have received termination notices due to a serious milk over supply. These are the latest in an alarming list of notices served on US dairy farmers, including 75 farmers supplying Grassland Dairy and 100 under notice from Dean Foods.
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Wyke from Somerset are set to build Ivy’s Dairy a 50,000 tonnes facility named after the Clothier family’s famous Grandmother Ivy Clothier. The dairy will be built over a period of eight years.
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Commonwealth Games and World Indoor Championship gold medallist Katarina Johnson-Thompson has been signed up as the Muller brand ambassador and joins a squad of 10 top athletes promoting the Muller brand which ranks 7th in the Grocers Top 100 British Brands.
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Arla have announced a 0.88ppl (1 Euro Cent) member price increase from June 1st. In addition, the 0.27ppl artic loading supplement is now achieved by more that half of Arla members and consequently this amount will be added to both the liquid and manufacturing standard litre prices published by www.milkprices.com. The 1.15ppl total increase gives the following standard litre prices Liquid standard litre 27.
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This increases the standard litre price to 25.3ppl
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Last weekend saw the UK reach its peak daily production in what has been undoubtedly a much smaller spring flush as a result of nature’s intervention. At the same time the May AMPE increased to 33.08ppl up 4.18ppl in 4 weeks with MCVE up to 32.33ppl an increase of 0.95ppl
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The innovative fixed price hedge offered to Muller direct suppliers to fix up to 50% of their milk for up to three years is now fully subscribed and closed. Almost all of the 180million litres on offer has been allocated with percentages committed varying from 10% to the maximum 50% and averaging 40% for each farmer with the majority of the deals for the maximum 3 years.
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Last Tuesday’s GDT auction recorded a 1.9% all products average increase to US $3637 compared to that achieved two weeks ago. The butter average was up a further 2.4% and has jumped by 30% in the past six months. There is now talk of a likely global butter shortage which is tipped to top trump and eclipse the record highs recorded in 2017. Key price changes were Cheddar index up 4.
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Of the total £85 million spend £75 million will be invested in Dairy Crests flagship Davidstow Creamery and will result in the cheese output from the factory increasing from 54,000 to 77,000 tonnes a year by 2023. The creamery in Cornwall will require an additional 200 million litres a year from a combination of its existing 330 suppliers as well as some n
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In a move other milk purchasers should take note of Grahams Dairies have rescinded their confirmed 0.5ppl milk price reduction, which took effect from May 1st. This results in an above average producer standard liquid litre price of 26.75ppl for May deliveries. In a letter to its suppliers, Grahams Dairies focus on the fact they are agile and that markets have strengthened.
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