IAN POTTER ASSOCIATES
12th August 2016
Telephone 01335 324594
Website www.ipaquotas.co.uk Email [email protected]
Issue No. 864
Today
Producers in
E&W
9,524
Last Week
Change
-14
4 Weeks Ago
9,538
1 Year ago
9,724
£:$
1.29
1.32
+0.03
1.32
1.56
£:€
1.16
1.18
-0.02
1.19
1.41
Crude Oil
$46.06
$43.94
+$2.12
$46.83
$49.34
AMPE
23.4 (July)
18.9 (June)
16.7 (July)
MCVE
12.5 (July)
19.6 (June)
21.7 (July)
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
1ppl milk price increase for suppliers to Pensworth Dairies – from 1st September
1.172ppl milk price increase for Muller Direct liquid Milk DPO formula contracts – from 1st September
The increase applies to the ex Dairy Crest formula suppliers and is the largest price increase the formula has delivered
and takes both standard litre prices to over 26ppl and is the second consecutive monthly increase.
The main influence has been the significant lift in bulk cream prices which are up by almost 75% since April worth
3.37ppl on the milk price. Sadly for the farmers involved come the 1st February 2017 the formula pricing mechanism will
be axed by Muller.
The new liquid core formula standard litre price will be 26.2ppl compared to the comparable 1st September no aligned
standard litre price of only 18ppl (www.milkprices.com).
0.5ppl milk price increase for suppliers to Pattesmores – from 1st August (PRODUCER NOTIFIED)
Muller defends their corner & attempt to dig themselves out of a PR grave
CEO of Muller UK Ronald Ker’s has responded to mounting criticism on his firms refusal to move non aligned farmgate
milk prices up with a letter to his producers. It states the case for the defence and in bold letters once again claims he is
building Britain’s Biggest and Best Dairy Business.
The letter is clear that Muller prices will not go up until “we actually realise these higher returns within our business”.
Clearly Muller haven’t achieved that for August or September which is a worry and some believe this is because Muller
have forward sold quantities of milk which now look vey cheap and could be holding prices back.
Where the letter is silent is with reference to the question asked by Michael Oakes, NFU Dairy Board Chairman last
week which was for Muller to explain why farmers have received some of the extra cream money (see above).
However analyst and journalist Chris Walkland has commented he does not blame Muller for not moving the price up in
September. He points the finger to the incredible lack of lobbying of milk buyers like Muller sooner which if it had
happened might have persuaded Muller to move its non aligned price for September 1st. The evidence points to a very
limited number of complaints about the Muller no aligned milk price from its own farmers.
To be fair the letter does make some valid points several of which were mentioned in this bulletin last week in addition
there are a couple of irritating ones. No matter what the defence is the reality is that heading into winter on a farmgate
milk price of 18 to 18.6ppl is painful, unstainable, disappointing and will not promote additional production.
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
Finally the letter should ideally have gone out at the end of July with the announcement that milk prices for Muller non
aligned were frozen. At the same time it could have addressed where the extra cream returns money Muller has
received has gone.
Arla Farmer Milk Brand broke the 1 million litre barrier in two weeks
Arla’s farmer’s milk sales in Asda stores have broken the 1 million litre barrier in just over two weeks since its launch at
the Great Yorkshire Show. An extra 25p from each 4 pints sold will be paid to Arla members, so that’s an extra £250,000
to kick start.
Cheap Milk
Booker cash and carry in Cardiff is selling Muller Wiseman milk 8 litres for £2.35 and this incredible offer runs for 2
months until the 4th October. That’s 29.4ppl!
England v Spain
Date: Tuesday 15th November 8pm
Venue: Wembley Stadium
England v Malta
World cup qualifier
Date: Saturday 8th October
Venue: Wembley Stadium
Tickets available for any areas of the stadium at a discount. Ian gets first Dabs!
Email [email protected] if you are interested. First come first served!
Next Sunday 21st August
This will only be of interest to anyone who is in the Peak District next Sunday Ian is one of the farmers involved with the
White Peak Farmers Group and will be present at the open day. (For further details on the Group see the attached
brochure). Note next Saturday is the 125th Ashbourne Show
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
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