Issue No: 922 1st December 2017
Today / Last Week / Change / 4 Weeks Ago / 1 Year agoProducers in E & W / 9,360 / 9,365 / -5 / 9,365 / 9,496
£ : $ / 1.34 / 1.33 / +0.01 / 1.31 / 1.25
£ : € / 1.13 / 1.12 / +0.01 / 1.13 / 1.18
Crude Oil / $63.23 / $63.57 / -$0.34 / $60.83 / $53.84
AMPE / 29.2 (November) / 32.7 (October) / 31.5 (November)
MCVE / 34.9 (November) / 36.6 (October) / 33.7 (November)
Feed price source: ForFarmers
ForFarmers are the UK’s leading animal feed supplier, for more information about products and prices telephone: 08457 228853, email: info.uk@forfarmers, Twitter: @ForFarmersUK
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.
All Entitlements are subject to availability and vendor acceptance:
No. of Ent / Type / Price/Ent30 / ENSDA / £110 ono
20 / ENSDA / £110 ono
SINGLE FARM PAYMENT @ £90 ACRE
The 2017 SFP exchange rate was set at 1 Euro = 89.47p, an increase of 5% on the 85,228p rate in 2016. The 2015 rate was 73.129p.
This should result in a 2017 Non SDA payment of £223 ha/£90 acre
The 2016 payment was £209 or £84 per acre
1.5ppl milk price drop for Muller Direct suppliers from January 1st
This is the first confirmed milk price drop, which will affect around 700 Muller Direct farmers taking their standard liquid litre price down from 30.5p to 29ppl from January 1st (www.milkprices.com). The fact Muller abide by the Voluntary Code is the reason for this early notification. The price reduction represents a 5% fall.
NFU Scotland have lambasted the Muller announcement claiming it will open the floodgates. The harsh reality is there are a few liquid processors who have been praying for Muller to make this announcement and they will certainly follow and quickly. The party is over and some didn’t even arrive in time to get a slice of the cake!
1ppl milk price reduction for Arla directs – from 1st January
This reduction will take producers standard liquid litre price to 28ppl (www.milkprices.com)
Freshways give advance warning of an anticipated January milk price reduction
Freshways gave 30 days notice to its farmers on the 27th November of an anticipated 1st January price reduction in the region of 1 to 2ppl based on their basket of five competitor milk prices.
In addition, they have given 60 days notice to suppliers of a reduction in volume bonuses ranging from 0.2ppl to 0.8ppl dependent on annual volumes supplied. The reductions take effect from February 2018.
South Caernarfon Creameries confirm no change to their January 2018 supplier milk price
We wouldn’t normally mention price holds but with the current yo-yo milk pricing Ian feels any price hold announcements for January 2018 warrant a mention.
This first stand on price Ian received from SCC on Wednesday.
The January 1st manufacturing standard litre price for the SCC co-op’s members remains at 31.03ppl (www.milkprices.com)
Barbers Cheesemakers confirm no change to their January 2018 producer milk price
This maintains producers’ standard manufacturing litre at 31.19ppl and the standard liquid litre at 30.08ppl.
Friesland Campina December price reduction still pays out circa 36ppl
Even after a 0.24ppl December decrease the equivalent December liquid standard litre milk price for Friesland Campina farmers equates to a healthy 36.076ppl according to www.milkprices.com
The corresponding organic liquid standard litre price will be as near as damn it 45ppl.
AMPE and MCVE continue to pull back
The November AMPE stands at 29.2ppl down 3.5ppl (from 32.7ppl October) in one month and now below the November 2016 AMPE value of 31.5ppl. MCVE is faring a bit better at 34.9ppl down 1.7ppl from the 36.6p value for October.
Morrison liquid milk price move has snowballed
Two weeks ago Morrisons increased its retail price of liquid milk from £1 for 4 pints to £1.10. Within days Tesco, Sainsburys, ASDA, Aldi and Waitrose have tracked Morrisons and lifted their prices.
OMSCO and Wyke Farms join forces
OMSCO and Somerset farm house cheesemakers, Wyke Farms, have announced the joint formation of “The British Organic Dairy Company” producing organic dairy products and growing market share with sales and marketing initiatives.
Fonterra fined circa £92million (NZ $183million)
The arbitration tribunal responsible for the dispute resolution between Fonterra and Danone concerning a Fonterra product recall in 2013 has determined that Fonterra pays an eye-watering £92million equivalent in compensation.
As a result Fonterra has immediately downgraded its forecast earnings per share by an estimated 10 cents per share equivalent to around a 20% reduction with a statement that the fine will not impact on farm gate milk prices. Howvever, when you are one of 10,500 co-op members it’s like a bulk bin if it comes out of the bottom quickly the bin soon empties and someone goes hungry. The average cost if spread across 10,500 members and their families is equivalent to around £9,000 each.
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Remember this bulletin 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, 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.