Ian Potter Associates s8

IAN POTTER ASSOCIATES 19th May 2015 Telephone 01335 324594 Website www.ipaquotas.co.uk Email [email protected] Issue No. 812 Today Last Week Change 4 Weeks Ago 1 Year ago

Producers in 9,856 9,8674 10,345 E & W £ : $ 1.552 1.522 +0.03 1.474 1.68 £ : € 1.384 1.341 -0.043 1.390 1.23 Crude Oil $65.70 $65.82 -$0.12 $59.06 $110.50 Wheat £116 £115 +£1.00 £121 £157 Soya meal £284 £292 -£8.00 £305 £369 AMPE 2014 19.9 (April) 21.4 (March) 33.1 (April) MCVE 2014 24.5 (April) 24.7(March) 33.4 (April)

(Commodity and currency prices – source ForFarmers)

Call us to trade English Basic Payment Entitlements

Available - 2015 English Basic Payments Entitlements – Trading deadline Friday 12 th June 2015 13.17 Normal Non SDA (use by 2016) £70 ono 8.95 Normal Non SDA (use by 2016) £70 ono 16.5 Normal Non SDA (use by 2016) £70 ono 4.72 Normal SDA (use by 2016) £130 ono 6 Normal SDA (use by 2016) £130 ono

GDT auction continues to fall Global dairy commodity prices continue to decline on account of unprecedented global production which is proving extremely difficult for some European processors to accommodate and process.

Today’s auction produced more disappointing news with the average price down a further 2.2% to average US $2472 compared to the $2515 average recorded only two weeks ago. Note, Arla Westbury powder average was up $20 a tonne.

Notable, movers were:

Cheddar down 7.1% to average $2745 SMP down 3.6% to average $1992 Butter down 3.2% to average $2911 per tonne WMP down 0.5% to average $2390 per tonne Arla Westbury SMP up 1% to average $1970 per tonne.

Unfortunately, excess to the GDT historical data was denied as we wrote this news. More detail commentary on today’s auction results will follow tomorrow.

Put simply it’s getting tougher.

The UK has passed its peak production day Milk purchasers have confirmed that on a daily basis milk production is declining having peaked in late April. Spot milk is trading at around 16ppl to 17ppl not withstanding this weekend’s Bank Holiday, which will inevitably cause a blip and exert short term pressure on spot prices.

0.03ppl price decrease for DC/DCD formula contracted producers – from June 1st This takes producers standard litre price to 28.618ppl, which gives a positive 5.113ppl price advantage over the Dairy Crest non-aligned standard litre price of 23.5ppl.

The main contributor to the small price correction is a £100 tonne decrease in cream values equivalent to 0.56ppl.

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 the 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 liability for any errors or omissions. Professional advice must always be taken before any decision is reached RPA stop producing UK milk production figures With the ending of quotas has come the news that the RPA will no longer collate UK monthly milk production figures.

Tesco Tom is no more Tom Hind (AKA Tesco Tom) will be leaving the retailer in a few days time following a relatively short 20 month employment as Tesco’s Director of Agriculture.

At the time if his appointment we suggested he could be a gamekeeper turned poacher. All eyes will be on where he next turns up. Perhaps he will be back at the NFU!