Ian Potter Associates s3

IAN POTTER ASSOCIATES 23rd November 2007

Specialist Agricultural Quota & Entitlement Brokers Telephone 01335 324594 Fax 01335 324584 Ceefax BBC2 Page 249 Website www.ipaquotas.co.uk Email [email protected]

Today Last Week Change 4 Weeks Ago Same Week 2006 12 month average Clean 1.90ppl 2.00ppl -0.10ppl 2.00ppl 2.00ppl Lease 0.10ppl 0.10ppl - 0.10ppl 0.20ppl AMPE 35.3ppl 36.30ppl 18.50ppl 25.13 MCVE 32.90ppl 33.15ppl 19.36ppl

33ppl for Northern Ireland’s United Dairy Farmers Northern Ireland’s milk pricing seems to be consistently delivering a competitive market related price to its members and its farmers suppliers should be smiling at their latest October payment, which has hit their bank account this week. Their base price is 30.5ppl taking the standard litre price (milkprices.com) to 30.76ppl. This takes them to 3rd position in milkprices.com’s rolling 12-month league table. As a co-op they have certainly delivered and have never deducted any money from dairy farmers’ milk cheques to go towards a capital account. Weekly payments to Cumbrian milk producers The Lakes Milk Producers Ltd (LMP) is the producer group who supply milk direct to Ronald Akkerman’s team and once again the Cumbrian’s group hit the dairying headlines. As part of an agreement between the group and Ronald Akkerman’s team from 1st January producer members will receive payment for milk delivered weekly in arrears. For example, milk supplied from Tuesday 1st January to Sunday 6th January will be paid by the Akkerman group on Monday 14th January and so forth. Milk statements will be distributed on the 15 th of each month as normal. As a result of the deal the expectation is that 100% of producers supplying milk will join LMP from its current 80%. This is sure to be popular both with current members and those who wish to join the queue of people keen to join but who have concerns over exposure to outstanding milk payments. First Milk results Although we have not yet seen their annual report the highlights from the co-ops results are flagged up as profit being £1.5m (down from 3.5m in 05/06. The fact that profits are down should not be an issue if members feel their co-op should not record healthy profits but deliver a competitive milk price to members. Problems only come if your achieve neither. Tim Smith is top dog at Food Standards Agency Former Arla Chief Executive (CE), Tim Smith, has landed the CE job at the Foods Standard Agency starting in March 2008. One co-op member drew our attention to Smith’s comment that “we have tough challenges ahead of us, especially in the fight against obesity.” Stilton in milk drinks Milk shakes could soon include the blue-veined cheese giving a new concept to food on the hoof. No surprises in CAP health check The health check, and that is exactly what it is being similar to an MOT on a vehicle as opposed to a complete rebuild, held no surprises and that old chestnut of capping payments is back on the radar once again. It has been on the agenda so many times it would not seem sensible at this stage to commence steps to circumvent any possible introduction. Prepare for a soft landing of milk quotas Further increases in national quotas are suggested in preparation for their ending on 31st March 2015 possibly in conjunction with a reduction is super levy. Whilst Dairy UK, in particular its Strategy Committee argues a quota increase would not benefit the UK and would simply reduce ex-farm gate milk prices across the UK and Europe, the NFU support quota increases. In its briefing, the NFU also comments “whilst recognizing that the impact of quota removal might be felt hardest in the LFA’s, it is essential that any support measures do not give producers in these areas an unfair competitive advantage or lead to any form of aid re-coupling”. Mad Mills is at least consistent Little wonder Paul McCartney has separated from Heather and her extreme views. Latest is her involvement in a pro-vegan poster campaign where she has accused the dairy industry of fueling global warming. Evidently airplanes account for 3% of all global warming, but dairy cows account for 18% according to Mills. She asks why we do not drink rats, cats or dogs milk? The posters will be on bill boards across the UK. First Milk launch range of Cumbrian cheddars The Lake District Cheese Company will specifically aim to market a new range of premium Cumbrian cheddars produced at First Milk’s Aspatria creamery. Initially they plan to focus on specialist outlets in Cumbria and the northwest and instead of asking outlets to pay for their first stocks of the new cheese, The Lake District Cheese Company asked for a voluntary donation to the Eden Valley Hospice in Carlisle. Farmer furious with the actions of a disreputable calf exporter On hearing that Scotland is pushing to resume the live export of calves, one farmer from the south of Scotland contacted Ian, claiming he was not paid for calves collected from his premises the day before the FMD outbreak. According to him, the calves were collected and a price agreed but because the export lorry was turned away from the dock, resulting in the disposal of the calves, the exporter has claimed that any price agreed was subject to the successful export of the calves. The farmer has asked if we could gather information together to check if his is an isolated incident or a widespread practice. He has informed us that he intends to alert the NFU of England & Wales and NFU Scotland to the practice with a view to taking advice as to the legality. If you had calves collected for which you were not paid, please either e-mail or fax Ian. No information supplied will be disclosed without your consent. The expectation of the calf exporters IPA have dealings with is that the green light to resume will not be given until early January commencement. Danone contemplates involvement in the creation of 30,000 cow plus super dairies French processing giant Danone has confirmed it is investigating the building of several super dairies in various parts of the world in a bid to secure supplies of milk. The farms will be modeled on the world’s largest single unit of 32,000 cows in Riyadh, Saudi Arabia. Danone has confirmed that a test unit could be operating by late 2008. Arla investment in Argentina Arla is to invest £10m in an Argentinean powder plant to boost the production of whey protein powder. IAN’S DIARY 29th November - Talk for Barclays Agricultural at The Premier Golf Club, Tarporley 4th December - Talk for The Western Holstein Club, Brookfields Golf Club, Hankelow, Nr Nantwich

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