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UK Milk Producer Price League Table
Published 09 June 2009

 

Company
APRIL ANNUAL AVERAGE PRICE (PPL)

Dairy Crest Waitrose (2)

28.29

DC M&S - Level (2)

27.50

DC M&S - Variable (2)

27.42

DFB Liquid TESCO (3)

27.14

Wiseman Sainsbury (3)

26.88

Wiseman Tesco

26.79

Arla Tesco (3)

26.62

First Milk Tesco - Profile (3)

26.45

DC Sainsbury- Level

26.40

DC Sainsbury - Seasonal

26.31

First Milk Tesco - Dual Pricing (3)

26.28

Milk Link Tuxford & Tebbutt

26.25

Lactalis/Caledonian Cheese - Profile

26.09

Lactalis/Caledonian Cheese - Seasonal

25.69

Arla Asda

25.67

Milk Link Cumbrian Direct Group

25.64

Grahams Dairies

25.54

Lactalis/Caledonian Cheese

25.49

Claymore Dairies

25.29

DC cheese David. - Level

25.00

Arla  non-aligned

24.97

DC cheese David. - Seasonal

24.92

Parkham Farms

24.90

Wiseman Partnership

24.88

Wensleydale (1)

24.84

Meadow Foods Level

24.81

Meadow Foods

24.75

Milk Link London Liquid

24.75

DC Liquid - Level

24.70

Arla  AFMP

24.67

Paynes Dairies

24.65

DC Liquid - Seasonal

24.61

Milk Link N. Expansion - Seasonal

24.55

Barber A.J & R.G

24.47

Milk Link Manuf. - Seasonal

24.40

Milk Link Manuf. - A&B

24.31

Milk Link N. Expansion - A&B

24.31

Joseph Heler

24.01

Belton Cheese

23.94

Wyke Farms

23.84

First Milk H&I Area - Profile

23.62

First Milk H&I Area - Dual Pricing

23.60

South Caernarfon Creameries

22.87

First Milk Liquid - Profile

22.58

First Milk Liquid - Dual Pricing

22.58

Glanbia Llangefni

22.52

First Milk Compositional - Profile

22.32

First Milk Compositional - Dual Pricing

22.32

Saputo/Dansco - Level

21.64

Saputo/Dansco - Seasonal

21.27

DFB Liquid London Premium

20.71

DFB Liquid Midland Premium

20.36

DFB Liquid

19.96

DFB Compositional

19.86

(1) Unconfirmed Prices

(2) The milk prices listed above will vary according to the amount of milk that is required by each retailer. Additional milk will be paid for at the conventional liquid milk price of Dairy Farmers of Britain (DFB) and Dairy Crest (DC) respectively. The milk price above assumes that all litres produced are sold into the dedicated milk pools.

(3) Farmers signed up with the Promar costings survey get an additional 0.50ppl

Milk prices are ranked according to the annual average price that would be paid on a contract for 12 months going forward if the present price schedule remained the same. 

Prices listed above are exclusive of:  Capital Retentions, Administration Charges, Farmer Group Subscriptions, and VAT.

Prices listed above are inclusive of:  DairyCo Levy, Seasonality. 

NOTES

Milk Price Changes

Except for Meadow Foods and Wensleydale, all dairies represented on our league table cut their milk price either in April or in May.

With the Dairy Crest M&S and the Tesco contracts both having price cuts in April, the Dairy Crest Waitrose contract is at the top of the April league table with an annual price of 28.29ppl based on the DairyCo standard litre. Waitrose is followed by Dairy Crest M&S at 27.50ppl and Tesco Local choice at 27.14ppl despite a 1.08ppl and 1.32ppl price cut respectively for April.  The 1.08ppl cut on the Dairy Crest M&S contract hides a 1.48ppl price decrease partly offset by the introduction of ‘Quality’ payment – yet another, as some might say,  rewarding low bactoscan and SCC.  Based on the DairyCo standard litre (30,000/ml Bactoscan and 190,000/ml SCC), it is worth 0.4ppl.  The 1.32ppl price decrease applied by Tesco from 1 April to their dedicated suppliers is being reflected in this month’s league table with prices ranging from 26.28ppl to 27.14ppl.  If farmers signed up to Promar costings, they get an extra 0.50ppl. 

Moving to the other milk price changes, April saw most of the price decreases applied by processors involved in the cheese and/or commodity markets.  For example: Dairy Crest Davidstow price has been cut by 1.25ppl and by a further 0.5ppl in May, First Milk has cut prices by 1.25ppl across all contracts and by a further 1ppl in May. Barbers by 2.05ppl, Glanbia by 1.48ppl and Wyke Farms by 1.30ppl.  In the current context, the 2.20ppl price decrease made by Dairy Farmers of Britain in April seems somewhat irrelevant after the news on 3 June that they went into administration and that famers are extremely unlikely to get paid for their May milk. 

In May, Arla announced that they cut their price by 1ppl.  This is their second price cut after the 2ppl decrease from January.  However, it is important to highlight that the balancing charges Arla have been applying this spring are particularly hefty.  For every litre supplied in excess of the November 2008 production level, Arla have deducted 4.5ppl in February and 6ppl decrease in March and April.  Based on the DairyCo standard litre, this balancing charge for these three months has caused the annual average price to fall by 0.15ppl.  By the nature of this charge, suppliers with a spring profile would have been most affected.

Also in May, Milk Link, Paynes Dairies, Parkham Farms and Graham’s Dairies all cut their prices by 1ppl with Caledonian Cheese cutting by 1.50ppl.  The Dairy Crest Liquid contract will also see its price cut by 0.75ppl in May taking it to 23.61ppl.  Dairy Crest stated that ‘unless there are significant market developments there will be no further liquid price changes until the next review in October.’  This declaration will bring some reassurance to suppliers on this contract and should put some pressure on the other main liquid milk processors not to drop their price any further.  Despite there reportedly being fierce competition in the middle ground, prospects for the liquid milk market look positive with the major retailers appearing to be supporting prices of liquid milk. Furthermore as we move towards the end of the spring flush there is less milk available which could reduce price pressure in middle ground markets and it also should be remembered that bulk cream prices have been strengthening in the last few months leading to the estimated cream income to a liquid processor increasing by 0.74ppl between February and May to 4.99ppl.

Erratum: In the March league table, Joseph Heler was incorrectly shown as having a 0.64ppl decrease for March.  The decrease is of 0.63ppl and should have been applied from 1 April.  DairyCo apologises for this oversight and any inconvenience caused.

April

Tesco: 1.32ppl decrease on their dedicated contracts (Wiseman, Arla, First Milk and DFOB Local Choice) from 1 April, Dairy Crest: 1.25ppl decrease on Davidstow cheese contract and 1.08ppl decrease on M&S contract from 1 April, First Milk: 1.25ppl decrease on all contracts from 1 April, Barber: 2.05ppl decrease from 1 April, Wyke Farms: 1.3ppl decrease from 1 April, Dairy Farmers of Britain: 2.2ppl decrease on all contracts from 1 April, Belton Cheese: 0.75ppl decrease from 1 April, Glanbia: 1.48ppl decrease from 1 April, South Caernarfon Creameries: 1ppl decrease from 1 April, Milk Link: 1.60ppl decrease on the Cumbrian Direct Group contract from 1 April, Joseph Heler: 0.63ppl decrease from 1 April.

May

Arla: 1ppl decrease from 1 May, Lactalis/Caledonian Cheese: 1.5ppl decrease from 1 May, Dairy Crest: 0.75ppl decrease on Liquid contract, 0.75ppl decrease on Sainsbury contract and 0.5ppl decrease on Davidstow cheese contract from 1 May, First Milk: 1ppl decrease on all contracts from 1 May, Milk Link: 1ppl decrease on all contracts except the Cumbrian Direct Group contract which decrease by 1.19ppl from 1 May, Graham’s Dairies: 1ppl decrease from 1 May 1, Paynes Dairies: 1ppl decrease from 1 May, Saputo: 2ppl decrease from 1 May, Wiseman: 1ppl decrease on Partnership contract and 0.9ppl decrease on Sainsbury contract from 1 May, Parkham Farms: 1ppl decrease from 1 May.

June
No changes announced

 

A and B Price

"Core" Volume

Percentage Profile

Conventional Seasonality

First Milk

Yes

80% of Average Daily Production

No

No

Milk Link

Yes

Average Daily Production in August - December

No

No

Arla
Hybrid
Average Daily Volume in Previous Milk Year
No
No

Glanbia Llangefni

No

Average Daily Production (Apart from Sep - Dec where it is 90% of above)

Yes

No

DFOB

No

Average Daily Production (apart from Sep - Dec where it is 90% of above)

Yes

No

Dairy Crest

No

Average Daily Production in the last 6 months

Yes

Yes


Standard Litre

Butterfat
4.00%
Protein
3.30%
Bactoscan
30,000
SCC
190,000
Volume
800,000

Note: Volume is based on 800,000 litres on EODC (unless only EDC is available) on a profile equivalent to the UK national average profile of the past three years. (Details can be accessed at the link below.)

Month
Volume
Apr
70,591
May
75,531
Jun
70,006
Jul
69,159
Aug
66,616
Sep
62,582
Oct
62,874
Nov
60,653
Dec
64,686
Jan
66,526
Feb
61,296
Mar
69,480

 

 

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