Milk Price Tracker

[Farmer Keith]

Time will tell, at the moment it’s hard enough growing grass!

I realise what I say is easier said than done!

 

[onesiedale]

Anyone else seen ollyblogs post about polish farmers being paid 60p a litre and retailing in shops at 85p. Is the middle just taking all the cream here?

if milk is 60p ex-farm, then retailing at 85p, someone is losing money.

 

[Headless chicken]

if milk is 60p ex-farm, then retailing at 85p, someone is losing mon

I could quite believe that. I did some maths on retailing our own and at £1 a litre I didn’t leave a huge profit if you’d borrowed money at current rates

 

[Beef farmer]

 

[TheRanger]

Dont believe everything you see on youtube

 

[farmer on a bike]

if milk is 60p ex-farm, then retailing at 85p, someone is losing money.

That gap is actually more than Tesco as full fat 4 pints (2.272L) at £1.45 works out at 63.82ppl and Tesco pay 42.86 giving a gap of 20.96ppl for processing, delivery etc compared to 25ppl quoted. However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc). Certainly suggests 4 pint bottle is a loss leader!

 

[crashbox]

That gap is actually more than Tesco as full fat 4 pints (2.272L) at £1.45 works out at 63.82ppl and Tesco pay 42.86 giving a gap of 20.96ppl for processing, delivery etc compared to 25ppl quoted. However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc). Certainly suggests 4 pint bottle is a loss leader!

Public are used to "cheap milk".

 

[jimred]

That gap is actually more than Tesco as full fat 4 pints (2.272L) at £1.45 works out at 63.82ppl and Tesco pay 42.86 giving a gap of 20.96ppl for processing, delivery etc compared to 25ppl quoted. However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc). Certainly suggests 4 pint bottle is a loss leader!

not a straight comparison. Milk in Tesco will have had the cream skimmed off and sold into more lucrative markets

 

[TheRanger]

Estimated GB milk deliveries at the lowest milk-year volume recorded in seven years

The estimated GB milk deliveries for the 2023/2024 season ended at the lowest milk-year volume recorded in seven years.

www.thescottishfarmer.co.uk

 

[Dairyfarmer999]

not a straight comparison. Milk in Tesco will have had the cream skimmed off and sold into more lucrative markets

Exactly. Worries me that our next potential BoD in Arla doesn’t understand the basics of the liquid market.

 

[frederick]

Exactly. Worries me that our next potential BoD in Arla doesn’t understand the basics of the liquid market.

I think the quote is being taken out of context. There was a post about polish farmgate price and supermarket price. Then a comparison was made with the UK. I expect in both cases the cream was being skimmed off.

In the first post a polish farm gate price of 60ppl and supermarket of 85ppl was quoted and onesiedale felt money was being lost foab simply demonstrated that the difference between the Tesco farm price and shelf price for a certain product was only 20.96.

I don't understand what principles of the liquid market were misunderstood. Every one knows margins on own label liquid milk are miniscule which is why arla tries to move the milk into brands.

A slide a while back from arla showed a ridiculous quantity of 4 pint bottles had to be sold to make the same margin as one pack of lurpak butter

 

[vantage]

A slide a while back from arla showed a ridiculous quantity of 4 pint bottles had to be sold to make the same margin as one pack of lurpak butter

Surely that’s on a need to know basis! Certainly not for consumption by potentially a supermarket snooper!

 

[farmer on a bike]

Exactly. Worries me that our next potential BoD in Arla doesn’t understand the basics of the liquid market.

Did you read my post? I clearly said my comparison was “full fat 4 pints” (yes, if you want to pedantic then it can be argued that if standardised to 3.8% there maybe a small amount of extra income available from cream, which would amount to 2.5ppl if the raw milk was 4.3% fat at current cream price). I then went on to mention very clearly:

However every other option Tesco sell will produce a higher margin eg smaller bottles, longer shelf life, fat reduced (fat available for other products etc).

I apologise if “fat available for other products” was not understood to mean “Tesco will skim the cream off and sell it into more lucrative markets” but it was certainly what I meant and I thought it was pretty clear.

 

[jimred]

Did you read my post? I clearly said my comparison was “full fat 4 pints” (yes, if you want to pedantic then it can be argued that if standardised to 3.8% there maybe a small amount of extra income available from cream, which would amount to 2.5ppl if the raw milk was 4.3% fat at current cream price). I then went on to mention very clearly:


I apologise if “fat available for other products” was not understood to mean “Tesco will skim the cream off and sell it into more lucrative markets” but it was certainly what I meant and I thought it was pretty clear.

Full fat milk in UK is standardised at 3.7%.

 

[lazy farmer]

Full fat milk in UK is standardised at 3.7%.

Since when ?

 

[frederick]

Since when ?

Since forever

 

[Bert Jansch]

3.7g per 100ml innit?

 

[lazy farmer]

Every days a school day.

 

[Bert Jansch]

Every days a school day.

So true

 

[farmer on a bike]

Full fat milk in UK is standardised at 3.7%.

I always understood the target at the dairy was 3.8, to make sure it definitely hits 3.7 but maybe I am out of date.