Ian Potter Associates Weekly Bulletin
26th May 2017
Issue No: 900
Today
Producers in
E&W
Last Week
Change
9,432
4 Weeks Ago
1 Year ago
9,446
9,586
£:$
1.29
1.29
-
1.28
1.46
£:€
Crude Oil
AMPE
MCVE
1.15
$51.13
31.0 (May)
33.3 (May)
1.16
$53.28
-0.01
-$2.15
1.18
$51.67
27.7 (April)
31.8 (April)
1.31
$48.90
16.8 (May)
16.6 (May)
(Commodity and currency prices – source ForFarmers)
For more information about feed prices and market trends visit www.forfarmers.co.uk or contact ForFarmers DML: 0870 0500306
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.
0.4ppl milk price reduction for Arla members – from 1st June
This takes producers’ standard litre liquid milk price to 26.65ppl and 27.73pl for the standard litre manufacturing price
(www.milkprices.com)
The price cut is obviously unwelcome, especially when it only applies to Arla’s circa 2,500 GB members, however, its GB
members did avoid a cut as a result of the accelerated currency smoothing payment, which neutralised a May price cut.
However, the NFU (England & Wales) appear to have Arla in their sights and turning almost a blind eye to making any
meaningful comment on the practices and milk price reductions of other milk purchasers, especially County Milk. See last
week’s bulletin with 1ppl retrospective producer price cut.
As the biggest milk purchaser Arla should expect to receive adverse press coverage when they drop the price, however,
numerous people are questioning why the NFU haven’t done a press release lambasting County Milk’s 1ppl backdated
price cut which effectively waves two fingers to the Dairy Industry Voluntary Code of Best Practice and firmly takes the
industry back to the dark days, pre the code.
So whilst the NFU claim “farmers are asking what’s going on” reference the Arla 0.4ppl cut Ian can confirm others are
asking what’s going on with regards to the NFU applying pressure proportionally, especially when it comes to
retrospective price cuts on which it has simply made a passing remark. The NFU could do much better unless it has been
silenced!
MCVE & AMPE both comfortably over 30ppl
The AMPE price for May is up 3.3p in one month to 31ppl and the corresponding MCVE price up 1.5p to 33.3ppl.
Fonterra price increase
New Zealand dairy giant Fonterra has increased its 2016/2017 farm gate milk price by 15 cents to $6.15 per kg MS as a
result of stronger world dairy commodity prices and is cautiously optimistic for the future.
EU milk out put is rising faster than budgeted
March output is up just under 1% across the EU and the growth is predicted to increase by significantly more than the
budgeted forecast increase of 0.6% for the year, especially for the second half of 2017 where anticipated growth now
expected to be 2%. This would give a total 2017 increase of around 1%.
Arla’s cheese isn’t made from Monster Milk
Arla has rattled some cages in Trumpland with a racy and controversial advertisement on US TV promoting Arla’s cheese
as not being made from cows which are monsters and given added hormones.
The advert depicts a six-eyed monster with razor sharp horns and electrified fur representing a child’s impression of the
hormone BST.
BST manufacturer Elanco has initiated legal action against Arla demanding the advert be pulled but as of today it’s still
running and gaining more publicity everyday, which must be great news for Arla’s US cheese sales. The jury is out on
whether the advert is pulled on the instruction of the authorities.
New look to Belton Cheese branding
Shropshire farm house cheese buyer, Belton, has unveiled a new very distinctive identity under the name of Belton Farm
with a strapline “Great British Cheesemakers”
Few things in life are for free & if you enjoy reading this bulletin then please give
us a chance to quote next time you order livestock tags!
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full range of visual livestock tags. Please don’t hesitate to call the office on 01335 320016 or email
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Remember this bulletin at the moment continues to be available free of charge and takes Ian & the team considerable time to produce.
The only encouragement to keep producing it is a combination of enthusiasm as well as 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 Ian Potter personally can accept any liability for any errors or omissions. Professional advice must always be taken before any decision is reached.