OCTOBER 2017 NEWSLETTER Independent representation for Dairy Crest Direct DPO DCD General Manager: Sophie James M: 07879 992099 E: [email protected] Your DCD Forum Member: Contact details can be found at www.dairycrestdirect.co.uk Dairy Crest Farm Business Centre: Freephone: 0800 121 4766 [email protected] www.dairycrestdirect.co.uk Company Price Month Arla 31.04 Oct-17 Meadow Foods 31.00 Nov-17 DC Davidstow Core 30.42 Nov-17 Wyke Farms 30.15 Nov-17 Barber’s 30.08 Nov-17 South Caernafon 30.01 Oct-17 Muller Direct 30.00 Oct-17 Crediton Dairies 30.00 Oct-17 Glanbia 29.96 Oct-17 Belton 29.25 Oct-17 Cadbury 29.11 Oct-17 First Milk H’west 29.06 Oct-17 Arla Direct 29.00 Oct-17 LIQUID LEAGUE TABLE WITH LATEST DECLARATIONS 4%b/f & 3.3% prot, 30 bacto, 200 SCC, 1mltrs/yr EODC. Excludes seasonality, monthly profile payments, balancing charges, capital deductions, annual/part growth incentive schemes and First Milk H’West Tesco Cheese Group Premium. Includes Arla forecast 13th payment. Aug-17 Jul-17 Aug-16 Bulk Cream £2,850/t £2,500/t £1,470/t Butter £6,150/t £5,420/t £3,250/t SMP £1,550/t £1,570/t £1,570/t Mild Cheddar £3,425/t £3,300/t £2,650/t Whey Powder €870/t €928/t €774/t AMPE 40.1ppl 36.7ppl 26ppl MCVE 38.7ppl 37.1ppl 28ppl SNAPSHOT OF UK/ EU WHOLESALE PRICES AND AHDB MARKET INDICATORS FOR AUGUST *AMPE and MCVE calculations above do not include the cost of transport. Company Price Month Arla 32.30 Oct-17 DC Davidstow Core 31.50 Nov-17 Wyke Farms 31.22 Nov-17 Barber’s 31.19 Nov-17 South Caernafon 31.03 Oct-17 Glanbia 31.00 Oct-17 Wensleydale Dairy 30.45 Sep-17 Arla Direct 30.16 Oct-17 First Milk H’west 30.05 Oct-17 Fresh Milk Company 30.03 Dec-17 Belton 30.00 Oct-17 Parkham Farms—Tesco 29.95 First Milk Lake District 29.93 Oct-17 Cadbury 29.11 Oct-17 MANUFACTURING LEAGUE TABLE WITH LATEST DECLARATIONS 4.2%b/f & 3.4% prot, 30 bacto, 200 SCC, 1mltrs/yr EODC. Excludes seasonality, monthly profile payments, balancing charges, capital deductions, annual/part growth incentive schemes and First Milk H’West Tesco Cheese Group Premium. Includes Arla forecast 13th payment. Sources: Milkprices.com and AHDB Dairy dairy.ahdb.org.uk NOVEMBER MILK PRICE Following extensive negotiation over the course of several days, DCD have agreed a 0.5ppl milk price increase from 1st November 2017 with Dairy Crest. The increase will take the Davidstow November milk price to 31.50ppl for a manufacturing standard litre and 30.42ppl for a liquid standard litre (standard litre according to Milkprices.com). The league tables to the left represent the latest pricing announcements on Milkprices.com at the time of printing. MARKET UPDATE AHDB Market Indicators AMPE and MCVE both moved up in August compared with July, AMPE by 9% and MCVE by 4%. In terms of MCVE, mild cheddar prices increased around £125/tonne in August compared to July, but whey powder prices again decreased, by 4%. Moving to September, AMPE and MCVE both dropped slightly with AMPE moving from 40.1ppl in August to 39.9ppl in September and MCVE from 38.7ppl in August to 38.5ppl in September. Mild cheddar values increased in by £25/ tonne in September, but whey powder prices fell a further 10%. Global wholesale prices remained buoyant for August but also showed contrasting trends in fats and powders, with Skimmed Milk Powder (SMP) prices continuing their downward trend. The EU Commission still has over 350k tonnes of SMP to be sold, despite holding 12 tenders. The intervention programme closed at the end of September, with a weakening of SMP prices predicted following the closure. According to AHDB, only 4% of the powder in intervention stores is less than 12 months old, therefore it may be that this will only be in demand in the animal feed markets. The Global Dairy Trade (GDT) Price Index was up 0.9% at the auction on 19th September, which follows a 0.3% increase at the previous auction, with the index having remained relatively stable since late 2016. GB milk production has been running slightly up y-o-y in recent months, but not significantly and overall is slightly behind production in 2016. Milk yield has shown an overall improvement in 2017, but a reduction in herd size has impacted milk production. The widespread move to beef semen when prices hit rock bottom, is reflected in the current number of youngstock recorded by BCMS, which may have an impact on production in the longer term.