DAVIDSTOW MILK PRICE INCREASE FROM AUGUST... NEWSLETTER Issue 133 July 2015 l Davidstow lIndependent...
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www.dairycrestdirect.co.uk NEWSLETTER Issue 133 July 2015 l Davidstow l Independent Representation for Dairy Crest Direct DPO Suppliers Dairy Ingredient Prices - JUNE 2015 Source AHDB DAIRY - next review W/C 27 JULY June 2015 May 2015 Jun 2014 Yr on yr change Butter £2,150/t £2,150/t £2,875/t - £ 725/t - 25.22% SMP £1,275/t £1,325/t £2,400/t - £1,125/t - 46.88% Mild Cheddar £2,350/t £2,350/t £3,050/t - £ 700/t - 22.95% Mature Cheddar No Dairy Co mature cheddar data published since July 14 Cream £1,000/t £ 920/t £1,400/t - £ 400/t - 28.57% Whey Powder £ 571/t £ 645/t £ 741/t - £ 170/t - 22.94% Cream Index 5.44p/l 5.00p/l 7.98p/l - 2.54p/l - 31.83% AMPE14* 15.70p/l 16.20p/l 30.30p/l - 14.60p/l - 48.18% MCVE14* 21.90p/l 22.30p/l 30.80p/l - 8.90p/l - 28.90% * AMPE/MCVE 14 - includes -2p/l D Co estimated delivery cost ‘farm to dairy’. DC Price In Context with AMPE 14/MCVE 14* DCD DPO 95% ‘SIGN UP’ SUCCESS BY 1st JULY DAVIDSTOW MILK PRICE INCREASE FROM AUGUST DAIRY MARKETS REMAIN UNDER PRESSURE AS PRODUCTION INCREASES JU DCD DPO SUCCESS As this Newsletter goes to press, DCD has significantly exceeded the RPA threshold required to establish the UK’s first Dairy Producer Organisation (DPO) as 95% of members have ‘signed up’. Very many thanks to the record numbers attending the recent meetings, and to all who have chosen to join the DPO. Dairy Crest will now be counter- signing the DC Milk Producer Agreements and returning a copy for you to retain. Reminder: Those who still wish to join the DPO need to complete, sign and return both of the new Dairy Crest Milk Producer Agreements and one copy of the DCD DPO Member Agreement asap. Those selecting to remain outside of the DPO not priced by Formula or retail arrangements will retain milk pricing ‘by discretion’. At this year’s Royal Cornwall Show discus- sions were dominated by milk price prospects, interest in the progress of the new de-min whey processing facilities at Davidstow, and of course the new DPO con- tract changes. Farming Minister George Eustice also visited the DC/DCD showstand and congratulated and endorsed DCD’s UK leading role in evolving to DPO status. New Davidstow Farm Standards Delivers August +0.25p/l Milk Price Increase July 1st will see a conclusion to the inaugural round of audits on all farms to the new Davidstow Farm Standards. These were jointly launched back in March in readiness for the new infant formula, de-min- eralised whey facilities, starting pro- duction this summer. In recognition of the application of the new standards, an addition- al payment +0.25p/l to a new standard litre of 25.34p/l (mp.com) has been agreed and will be paid for milk supplies from August. This is the first increase to apply at Davidstow since November 2013, and as an increase in itself represents a marked con- trast to all other UK announced milk price declarations during 2015. With all Davidstow Farm Standards audits now completed, please remember that from July, ongoing audits to the new standards will be co ordinated alongside all future Red Tractor Farm Assurance assessments. Where any Davidstow Farm Standards non compliances are identified, you must rectify all non compilances and return any required details within the following 28 day period. Dairy Markets - latest AHDB’s (Dairy Co) June market review (released Friday - see chart below) reports an improvement for cream returns, but oth- erwise records a downbeat market dataset. AMPE (processing milk into butter/skim milk powder) falls yet again and back to a level not seen since August 2006, with SMP values now at almost intervention levels. Meanwhile, MCVE (processing into mild ched- dar), falls again, with conventional whey pow- der returns down to the lowest levels for five years at £571/t. More market and production news overleaf. DPO FARMING MINISTER GEORGE EUSTICE M.P. ENDORSES DCD’S LEADING DPO STATUS left to right: DCD Directors Ian Harvey; DCD Vice Chairman Stephen Bone; the Minister inspecting the new Milk Producer Agreement/DCD DPO Agreement; DCD’s Richard Stanbury, Dairy Crest’s Agriculture & Communications Director Lyndsay Chapman.
Transcript of DAVIDSTOW MILK PRICE INCREASE FROM AUGUST... NEWSLETTER Issue 133 July 2015 l Davidstow lIndependent...
www.dairycrestdirect.co.ukNEWSLETTER
Issue 133 July 2015 l Davidstow l Independent Representation for Dairy Crest Direct DPO Suppliers
Dairy Ingredient Prices - JUNE 2015Source AHDB DAIRY - next review W/C 27 JULY
June 2015 May 2015 Jun 2014 Yr on yr changeButter £2,150/t £2,150/t £2,875/t - £ 725/t - 25.22% SMP £1,275/t £1,325/t £2,400/t - £1,125/t - 46.88%Mild Cheddar £2,350/t £2,350/t £3,050/t - £ 700/t - 22.95%Mature Cheddar No Dairy Co mature cheddar data published since July 14Cream £1,000/t £ 920/t £1,400/t - £ 400/t - 28.57%Whey Powder £ 571/t £ 645/t £ 741/t - £ 170/t - 22.94%
Cream Index 5.44p/l 5.00p/l 7.98p/l - 2.54p/l - 31.83%AMPE14* 15.70p/l 16.20p/l 30.30p/l - 14.60p/l - 48.18%MCVE14* 21.90p/l 22.30p/l 30.80p/l - 8.90p/l - 28.90%* AMPE/MCVE 14 - includes -2p/l D Co estimated delivery cost ‘farm to dairy’.
DC Price In Context with AMPE 14/MCVE 14*
DCD DPO 95% ‘SIGN UP’ SUCCESS BY 1st JULY DAVIDSTOW MILK PRICE INCREASE FROM AUGUST
DAIRY MARKETS REMAIN UNDER PRESSURE AS PRODUCTION INCREASESJUDCD DPO SUCCESSAs this Newsletter goes to press, DCD hassignificantly exceeded the RPA thresholdrequired to establish the UK’s first DairyProducer Organisation (DPO) as 95% ofmembers have ‘signed up’. Very many thanksto the record numbers attending the recentmeetings, and to all who have chosen to jointhe DPO. Dairy Crest will now be counter-signing the DC Milk Producer Agreementsand returning a copy for you to retain. Reminder: Those who still wish to join theDPO need to complete, sign and return bothof the new Dairy Crest Milk ProducerAgreements and one copy of the DCD DPOMember Agreement asap. Those selecting toremain outside of the DPO not priced byFormula or retail arrangements will retainmilk pricing ‘by discretion’. At this year’s Royal Cornwall Show discus-sions were dominated by milk priceprospects, interest in the progress of thenew de-min whey processing facilities atDavidstow, and of course the new DPO con-tract changes. Farming Minister GeorgeEustice also visited the DC/DCD showstandand congratulated and endorsed DCD’s UKleading role in evolving to DPO status. New Davidstow FarmStandards Delivers August+0.25p/l Milk Price Increase
July 1st will see a conclusion to theinaugural round of audits on allfarms to the new Davidstow FarmStandards. These were jointlylaunched back in March in readinessfor the new infant formula, de-min-eralised whey facilities, starting pro-
duction this summer. In recognition of theapplication of the new standards, an addition-al payment +0.25p/l to a new standard litreof 25.34p/l (mp.com) has been agreed andwill be paid for milk supplies from August. This is the first increase to apply atDavidstow since November 2013, and as anincrease in itself represents a marked con-trast to all other UK announced milk pricedeclarations during 2015.With all Davidstow Farm Standards auditsnow completed, please remember that fromJuly, ongoing audits to the new standards willbe co ordinated alongside all future RedTractor Farm Assurance assessments. Where any Davidstow Farm Standards noncompliances are identified, you must rectify
all non compilances and return any requireddetails within the following 28 day period. Dairy Markets - latestAHDB’s (Dairy Co) June market review(released Friday - see chart below) reportsan improvement for cream returns, but oth-erwise records a downbeat market dataset.AMPE (processing milk into butter/skim milkpowder) falls yet again and back to a level notseen since August 2006, with SMP valuesnow at almost intervention levels.Meanwhile, MCVE (processing into mild ched-dar), falls again, with conventional whey pow-der returns down to the lowest levels forfive years at £571/t. More market and production news overleaf.
DPO
FARMING MINISTER GEORGE EUSTICE M.P. ENDORSES DCD’S LEADING DPO STATUS
left to right: DCD Directors Ian Harvey; DCD Vice Chairman Stephen Bone; the Minister inspecting the new Milk ProducerAgreement/DCD DPO Agreement; DCD’s Richard Stanbury, Dairy Crest’s Agriculture & Communications Director Lyndsay Chapman.
Dairy Crest Direct Limited, Registered in England and Wales, Company Number 5094434Registered Office: Hill Farm, Longney, Gloucestershire, GL2 3SW
Useful Contacts:Your DCD Forum
MemberForum contact details can befound via the DCD Website or
via the Dairy Crest Farm Connect website
DCD Office:Michael MastersT: 01458 835060M: 07729 788767F: 01458 833007E: [email protected]: www.dairycrestdirect.co.uk
Dairy Crest FarmBusiness Centre: Freephone: 0800 121 [email protected] assist:Electricity: 0844 887 1114Footprinting: 01452 720053White Gold: 0845 873 1410
Production & Markets latest
AHDB’s latest UK daily milk production datareleased last Friday for the period to 20thJune, reports +1.1m litres/day above thesame week last year. At last - a reductionrecorded in the weekly incremental increas-es for the first time in weeks.The production results released for the pre-vious week (13th June) recorded an increaseof +1.6m litres/day, and levels similar tothose achieved at the 2014 peak. Excellentgrass growing conditions so far this year, an
increasing UK herd and a record number ofimported cattle in 2014 have all contributedto further historic levels of milk production. As we reported at the recent DCD membermeetings, the change in the rolling UK 12months milk production across the last twoyears has seen an increase accounting for anadditional 1.6billion litres. This volume placedin context against UK retail liquid milk salesequates to approx. the entire annual retailliquid milk sales of major retailers Tesco,Sainsbury and Waitrose - combined.Production across many EU states nowunshackled by milk quotas is similarly accel-erating. The ‘Irish Farming Journal’ only thislast week reported that major Irish proces-sor Glanbia is recording increases in milkproduction equating to +18% for June alone.Other Irish processors are reporting similarincreases. No details are available as yet as towhat dairy products this additional milk hasbeen processed into; cheese, butter or milkpowders.
Respected bankersto the international
dairy sector, Rabobank, in their latest quar-terly Dairy Prospects report that dairy mar-ket recovery is now not expected until laterin 2016. Milk production supply vs demandrequiring to come into balance before anyrecovery can start. That said, caveats arounda significant adverse ‘weather event’ maychange this position. This week’s announc-ment of a further 12 month’s extention tothe Russia/EU dairy trade embargo will notbe provide any early welcome respite either.As a consequence of the global change indairy market fortunes, those nations morereliant on international markets are nowoffering longer term fixed prices at low lev-els. In Ireland c.20p/21p/l for the next threeyears, and NZ Fonterra offering a guarantee15/16 payment of c. 17p/l - this apparentlybeing 100% oversubscribed even at this level. NZ milk prices in February 2014 by contrastwere c. 34p/l.
DCD Annual Report& AGM - 14th JulyThe AGM is being held atStonehouse Court Hotel, BristolRoad, Stonehouse, Glos, GL103RA. All details are includedwithin the 11th DCD AnnualReport circulated previously tocomplement this meeting. Thereport details what has been atransformative year in DCD’sdevelopment, enhanced by ourGovt. Dairy Funded activities. The AGM usually lasts an hour,light refreshments to follow.
Muller & Dairy Crest‘dairies sale’ Latest The CMA who arethe regulatoryauthority reviewing the pro-posed sale, announced last Fridaythat Muller has responded to theCMA’s initial report (12th June)requiring that further ‘undertak-ings’ to safeguard competitionwould be necessary. The CMA now has until 21stAugust to report. To see the fullCMA press release see the web-site www.dairycrestdirect.co.uk
On Farm AntibioticTesting RequirementAs a reminder, the New MilkProducer’s Agreements requiresthat all farms must have theirown antibiotic test kit, and up todate ampules on farm. DCD hasagreed discounted rates tosecure Delvo SP kits and con-sumables. This is the most com-prehensive AB testing kit avail-able, also used by NML.DCD Price - excl VAT and p&pDelvo SP incubator £101.00 25 pack ampules £ 41.95
June saw celebrations take placemarking one and a half decades ofboth the Marks & Spencer andWaitrose milk pools. These two
retail relationships are the ‘forerun-ner exemplars’ of all farmer retailmilk pools. Originally launched byUnigate, with an initial milk price
premium of just +0.2p/l above the standard liquidcontracts back in 2000, to the level achieved todaywithin Dairy Crest’s stewardship. The scheme’s standards required to supply both of
these premium retailers have naturallyevolved considerably over the interven-ing 15 years, these developed in closeconsultation with their DCD reps andDairy Crest throughout. Special mention of thanks must beextended to all of the representativeteams involved since the outset, and inparticular, to the two pool Chairman,Brian Barnett (Waitrose) and MarkRobins (M&S) who have overseen bothpools for many years.
Brian Barnett To order or for more informationt. 01225 460234/423894
or: www.millwoodproducts.co.uk
Mark Robins
15 Year Anniversary of DCD Member Milk Pools
