Ian Potter Associates s2

IAN POTTER ASSOCIATES 13th March 2015 Specialist Agricultural Quota & Entitlement Brokers Telephone 01335 324594 Fax 01335 324584 Website www.ipaquotas.co.uk Email [email protected] Issue No. 804 Today Last Week Change 4 Weeks Ago 1 Year ago

Clean 0.05ppl 0.08ppl 0.03ppl 0.1ppl 0.2ppl Producers in 9,894 9,914 -20 9,914 10,382 E & W £ : $ 1.498 1.552 -0.054 1.521 1.66 £ : € 1.410 1.366 +0.044 1.348 1.19 Crude Oil $56.49 $61.35 -$4.86 $57.96 $108 Wheat £123 £119 +£4 £126 £170 Soya meal £309 £320 -£11 £319 £405 AMPE 23.6 19.5 35.7 MCVE 25.9 23.0 37.1 (Commodity and currency prices – source ForFarmers)

Milk Quota Available (Sale) - all 0.1ppl or nearest offer Litres Available Butterfat % 221,626 3.81 547,629 3.93 2,500,000 3.95 1,077,774 4.13 753,684 4.21

2015 Entitlements Available 7 English Normal (use by 2016) £140 ono 9.5 English Normal (use by 2016) £140 ono 22 English Normal (use by 2015) £140 ono 34 English Normal (use by 2016) £140 ono 30 English Normal (use by 2016) £140 ono

1.42ppl milk price cut for Joseph Heler cheese suppliers – from 1st April This comes on top of the 1.75ppl cut on the 1st February, which slipped by us unnoticed until one of our readers alerted us to both price drops. Total price cut this year 3.17ppl.

1.25ppl milk price cut for Grahams (Scotland) – from 1st April This takes producers standard litre price down to 25.25ppl. (www.milkprices.com)

0.006ppl milk price increase for Dairy Crest/DCD formula contracts A small but positive move which takes producers standard litre price to 28.647ppl. It is the first increase since July 2014 and delivers a 5.4ppl plus premium above the DC/DCD April standard litre price.

Spot prices under pressure Spot prices are holding up well at around 22p with the odd report of 24p but as production increases its clear there is more supply than there is demand and that is not be helped with an early Easter period. The sooner any flush is over the better because it’s certainly a weak spot market.

On the plus side EU prices for powders, butter and cheddar continue to move up.

February Milk Production February production weighed in at 1.077 billion litres down 21.5 million litres (-2%) compared to that recorded in February 2014.

Cumulative production for the first 11 months of the year is 13.1 billion litres and by the end of the year is likely to clock up in excess of 14.3 billion litres, which will be a chart topping production year.

Cumulative butterfats stand at 3.99% compared to 4.01% a year ago.

New CEO takes the helm at First Milk

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 After a six year spell Kate Allum has been replaced by Mike Gallacher as CEO of troubled co-op First Milk with effect from 18th March. It’s taken some considerable time for head hunters to secure her replacement but that’s understandable given the situation.

It’s an interesting appointment, especially given Mike’s non-dairy background and there is little doubt he will be in at the deep end so far as member expectation is concerned.

Kate has almost been in hibernation during the winter months and the decision to leave her position has been a reasonably well kept secret for around four months. It is rumoured that she was particularly unhappy following the Board’s decision to delay member milk cheque payments.

Poison threat to baby powder For the past month New Zealand police have been investigating a blackmail threat to contaminate New Zealand baby powder with 1080 (Sodium Monofluoroacetate), which is applied by air to control possums, which are blamed for the spread of bovine TB in New Zealand just as badgers are blamed in GB.

Those licensed to use 1080 have publically stated its business as usual with the aim of controlling and, if possible, eradicating BTB. However, the authorities have recently tightened up control on the distribution and use of 1080.

The threat came in the form of blackmail letters sent to two of New Zealand’s main infant formula processors Fonterra and Federated Farmers in November 2014. The threat was to contaminate baby powders unless New Zealand ends its use of the 1080 poison by the end of this month. Included with the letters the criminals provided samples of baby powder, which tested positive for a concentrated form of 1080 poison.

Since the threat was received 45,000 product samples have tested negative for 1080 going back to September 2014 baby powders manufactured prior to the blackmail letters.

The protest has done nothing to help improve the price of New Zealand infant formula, especially when orders from the world’s biggest importer of New Zealand baby powder China, plummeted overnight. China is now demanding certificates with every shipment guaranteeing the consignment is 1080 free.

This is the third New Zealand dairy product safety/contamination scare in as many years.

In 2013 there was the DCD residue contamination found in Fonterra products followed by late 2013 the Botulism false alarm forcing a product recall by Fonterra

PRICE WATCH – FREE MILK Last week's Buxton Advertiser had a coupon offering a FREE 4 pint carton of milk from Tesco's store at Whaley Bridge

FOR SALE 29 bales of double wrapped quality haylage ideal for sheep or horses. Located near Ashbourne, Derbyshire DE6. Email [email protected]

Pinpointpal GPS Tracker Offer

A few weeks ago we held a competition for 10 lucky readers to win one of 10 Pinpointpal trackers, which we knew would be an instant success as a new technology applicable for farming.

Ian Potter Associates has partnered with a British manufacturer Pinpointpal to bring you a fantastic discounted reader offer full details of which will be emailed out to email recipients on Monday.

This is a fantastic device (Ian has got one) and clearly the major benefits of the device are for normal theft tracking and health and safety in remote locations. And the good news is that we have 40 remaining on a special offer of £150 + VAT. To take advantage of this great offer just mail us at [email protected] or call 01335 324594, normal price £250 inc. vat and includes 2 years free monitoring. There are no hidden cost extras!

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