This takes producers’ standard liquid litre price to 27ppl and based on a manufacturing standard litre to 27.38ppl (Chester suppliers) and 27.25ppl (Cumbria suppliers). The key influencing factor is the improvement in wholesale cream values.
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That’s the opening lyrics to the Yazz and The Plastic Population record and its now the only way UK, European and world dairy prices are moving. Key influencers are: Milk deliveries are 3 to 5% lower than budgeted. Futures prices are increasing, especially for the second half of 2018 due to product availability concerns. Wholesale prices for most, if not all, dairy products are rising globally.
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Paynes Dairies are offering a fixed price contract at 28ppl, which will run until November 2019. The positive interest and uptake has been excellent with a couple of exceptions who declined on the basis it’s not enough money! Initially all Paynes suppliers have been offered the opportunity to fix up to 2% of their production, which could prove to be an administrative nightmare.
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One eagle eyed regular reader spotted Britain’s most expensive milk in a Tesco store. It was Tesco branded 1% milk proudly stating “Tesco fair for farmers guarantee”. If Tesco pay the farmers a fair share of £480.00 litre they will certainly rise to the top of the tank with the cream. Meanwhile Tesco have reduced the shelf price of 4 pints from £1.10 by 1ppl to £1.
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This takes Muller Directs standard liquid litre milk price to 26.75ppl as a result of strengthening markets (see below)
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Apologies to any processors who feel that trumpeting a June stand on price is worthy of a mention in this bulletin but it won’t be. Only GB price increases for June will be reported. Prices are certainly trending up both on the spot and with futures prices and remember both AMPE and MCVE are both up (see above). The mood is both positive and cautiously op
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AHDB’s April dairy wholesale round up confirms cream increased by £150 tonne worth just under 1pp to a liquid processor and making the total value of cream to a liquid processor 12.16ppl Butter was up £440 tonne and even SMP recorded a small increase, as fresh SMP became harder to find.
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An increased tonnage of 19,508 tonnes (+1.3%) saw the average price fall predominantly due to the fall in WMP. Notable movers were: SMP up 3.6% to average US$1999 tonne Cheddar up 3.1% to average US$4024 tonne Butter stand on to average US$1990 tonne WMP down 1.5% to average US$3231 tonne
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Although it’s their 6th consecutive price drop the European dairy giants latest equivalent 0.27ppl price drop results in a standard liquid litre price of 29.019ppl, which most in GB can only dream about.
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There is no secret that Muller have had a good 2018 in terms of quietly recruiting a number of large producers across GB. Now the doors are publically open as Muller’s planned investments mean they require more milk than their existing 1700 suppliers are expected to be able to deliver.
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This takes producers standard liquid litre price down to 26.25ppl. This could be the last 1st May price cut.
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The April AMPE price weighs in at 28.90 a 2.22ppl increase in a month, whilst MCVE stands at 31.38ppl for April, a monthly increase of 0.33ppl. The AMPE increase is almost entirely down to the rise in the value of butter, however, SMP also increased in value.
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