IAN POTTER ASSOCIATES
6th July 2012
Specialist Agricultural Quota & Entitlement Brokers
Telephone 01335 324594 Fax 01335 324584
Website www.ipaquotas.co.uk Email [email protected]
Today
Clean
AMPE
MCVE
Producers in
E&W
£:$
£:€
Crude Oil
Wheat
Soya meal
0.15ppl
23.50ppl
30.44ppl
10,724
£1.
£1.
£9
£1
£3
Issue No. 680
Last Week
Change
4 Weeks Ago
0.20ppl
22.10ppl
30.48ppl
0.20ppl
0.20ppl
22.10ppl
30.48ppl
10,724
0.35ppl
35.20ppl
33.16ppl
10,907
£
£
£
£
£
£1.54
£1.24
£101
£179
£361
£1.60
£1.12
£97
£164
£280
£1.55
£1.25
£93
£195
£372
1 Year ago
(Commodity and currency prices – source BOCM Pauls)
Milk Quota Available
Litres Available
Butterfat %
Price
1,037,132
3.817377
0.20ppl negotiable
499,334
3.88
0.15ppl negotiable
577,066
4.28
0.20ppl negotiable
Should you require any information or prices on available milk quota, please contact [email protected]
2ppl milk price drop for Arla/AFMP suppliers – from 1st August 2012
This table topping drop reduces the Arla non retailer aligned standard litre price to 24.02p (source din) allowing for the
0.5ppl compulsory levy which is one of the lowest farmgate milk prices in the UK
One AFMP member e.mailed Ian with the following “But how can Arla have been allowed to get away with this. They can
turn their cream in to butter and indeed Anchor branded butter. Is this the Danes & Swedes saying let’s have some
money back because there is little the farmers can do to stop us? I think there is some truth in this theory.”
Another comment from a large Arla AFMP producer read “The Bad news has arrived ARLA have done us 2p 1st Aug - so
much for investing in a company who want to move forward with their suppliers!”
1.65ppl milk price drop for Dairy Crest/DCD liquid suppliers from 1st August 2012
However DC and DCD have agreed that there will be no further price drops in 2012 with the expectation (certainly from
DCD) that there will be 1 or more price increases before the end of the year. This takes their non retailer aligned standard
litre price down to 24.51ppl.
1.7ppl milk price drop for 1st Milk liquid suppliers from August 1st
0.9ppl milk price drop for 1st Milk balancing suppliers from August 1st
These two drops come as no surprise given the fact at least 80% of First Milks liquid milk is sold to a combination of
Wiseman and Dairy Crest. Perhaps First Milks liquid suppliers should think themselves lucky Arla do not buy milk from 1 st
Milk.
The drop takes First Milks liquid suppliers standard litre price down to 24.35ppl.
2ppl milk price drop for Paynes Dairies suppliers – from 1st August 2012
0.65ppl milk price increase for suppliers to the Co-op Dairy Group (Wisemans) from August 1st
The Co-op cannot be accused of sitting back and doing nothing because today they have informed their liquid milk
suppliers that they are implementing an interim increase of 0.65ppl paying a premium of 2ppl as opposed to the current
1.35ppl above the Wiseman Standard litre price. The increase remains until the market improves. It’s not a cost of
production price but it is a positive step in the right direction.
All this and spot milk rockets to 29p (delivered price)
11th May spot milk 19.5p
12th June spot milk 20.5p
5th July spot milk 29p
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 the 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 liability for any errors or omissions. Professional advice must always
be taken before any decision is reached
Suddenly spot milk traders are hunting for milk.
The sooner all milk producers cut production the better. Remember more = less and less = more.
NFU’s Scottish Dairy crisis open meeting – Lanark Auction Monday July 9th (pm)
Dairy farmers and producers are urged to attend.
London crisis summit – London Wednesday 11th July – Contact NFU offices for more details.
The turnout of farmers and their suppliers to these meetings needs to send a clear message to MP’s, retailers and the
public as to how big this problem is.
These two meetings will determine how much support the NFU’s have. It’s a big test for them and they need the support
of both members and non members.
Asda and Morrisons are now the main targets
Assuming next weeks Great Yorkshire show takes place all dairy farmers have the opportunity to make their views known
at either of the retailers large stands at the show. In addition AFMP’s Jonathan Ovens and Arla’s Ash Amirahmadi are
rumoured to be attending the show.
Whether it’s one to one or a demonstration, as seen on the Arla stand a few years ago, this is an opportunity for both
Asda aligned, AFMP non aligned and all others to forcefully make their point and express their views.
Asda only buy around 60% of their 400 or so million litres of liquid milk from Arla paying a 1ppl premium. That means the
real premium they pay is diluted to 0.6ppl above the Arla standard litre price.
Morrisons claim to pay a 1ppl premium which is spread across all of the non aligned farmers within the Dairy Crest and
Arla non aligned producers which means an average of 0.25ppl premium.
Compare these figures to Sainsburys 30.56ppl and Tesco on 29.56ppl.
Do your bit for honest hard working British dairy farmers
Ian cannot claim credit for this idea which came from one of our regular bulletin readers. It’s a great idea and every reader
needs to follow it and action it now. Do NOT forget.
Please can every reader, every dairy farmer, all of the Womens Institute members and all of your friends immediately
change their shopping habits.
Please consider buying your groceries from either Waitrose, M & S, Sainsbury or Tesco and from none of the other large
or middle ground retailers. Perhaps I should include co-op given their latest move which whilst not a solution they should
be given recognition for doing something positive.
Only these four retailers pay dairy farmers a cost of production milk price. Be sure when buying milk to not buy any
discounted milk from Sainsburys or Tesco and only buy the milk they buy from their dedicated dairy farmers which is sold
as TSDG or Sainsburys Dairy Development Group SDDG milk.
So retailers who pay dairy farmers a market related price or that plus a small premium include Asda, Morrisons, Lidl,
Iceland, Budgens and the Whitbred group who supply the Costa Coffee chain. By changing your shopping habits you will
make a point.
Olympic games could be a target
The idea to celebrate all things British at the opening ceremony of the Olympic Games in August could be a target for
dairy farmers cry for help. Disruption of liquid milk supplies would need careful planning and whilst achievable Ian would
not advocate it because it will alienate consumers who are not todays target.
Farmers weekly go back to school
FW are regularly good sports these days but this weeks chart shown below indicates their conversion tables are not
working correctly.
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 the 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 liability for any errors or omissions. Professional advice must always
be taken before any decision is reached
http://www.fwi.co.uk/Articles/03/07/2012/133719/Milk-price-cuts-Milk-in-numbers.htm
If only it were true that farmers get between 55 to 68p/litre.
Call for an immediate reversal of all milk price cuts
A consortium of producer organisations are calling for an immediate (1 st August) reversal of all 1st April 2012 to date milk
price cuts.
The consortium includes FFA, NFUs, NFU Cymru, NFU E & W, TFA. No mention of Dairy UK or RABDF.
The plea is for dairy farmers to show solidarity and to turn out in force at one of these meetings.
In Ians opinion you have exactly 7 days to make a difference after which you all will reap what you deserve. By this time it
will be too late.
Apologies to readers to whom Ian has not responded
Whilst Ian has a real passion for the dairy industry the numbers of farmers emailing and telephoning the office this week
has meant Ian has had to decline to speak or reply to anyone.
He has opened and read all emails and taken on board all suggestions and has communicated his thoughts through this
bulletin. An unprecedented 280 emails and 124 incoming calls demonstrates the frustration of dairy farmers and their cry
for help. But Ian is not the dairy industry equivalent of Superman and simply cannot dedicate 100% of his time to dealing
with calls and emails from frustrated farmers. As for Ian going on twitter it’s a non starter because he would end up with
the need to respond dominating his life. I trust all readers understand his position.
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 the 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 liability for any errors or omissions. Professional advice must always
be taken before any decision is reached