NEWSLETTER - Dairy Crest Direct

NEWSLETTER
www.dairycrestdirect.co.uk
Issue 114 December 2013
Independent Representation for Dairy Crest Direct Suppliers
DCD Reps Meet with Dairy Crest Executive Team
Davidstow & White Gold Meetings - Reminders
January Std Liquid & Davidstow Milk Price - no change
Dairy Crest Executive Team (left to right)
Martyn Wilks, Managing Director, Mark Allen, Chief Executive,
Mike Sheldon, Group Procurement Director, Tom Atherton, Finance Director.
Dairy Crest Farmer
Forum
DCD Board and Forum Reps from all regions
met last week for a DCD Forum Meeting, this
followed by a comprehensive presentation
and Q&A session with Mark Allen and his
Executive Team at the DC Farmer Forum.
Mark opened the presentation detailing the
recently announced DC financial results. The
first six months trading recording steady
progress - as Mark reported in his letter to
all DCD members earlier this month.
Highlights for the future being the £45m
investment into the new whey processing
facility at Davidstow to access the growing
global market place for demineralised infant
milk powders. Further investment into DC’s
brand portfolio and the completion of the
£75m three year investment across the liquid
dairy sites, plus the major expansion of the
FRijj milk shake capability.
He reinforced the importance of working
with DCD and stated: “DCD is absolutely fundamental to all that Dairy Crest does, without milk, Dairy Crest has no business”.
David reported on the past year where we
have seen considerable dairy processor evolution, and the greater influence of EU
processors within the UK market, evidenced
further with First Milk’s alliance with Adams
Foods/Irish Dairy Board announced in the
past month. These new partnerships delivering a growing EU perspective to our marketplace, and potentially more volatility too.
Within retail, margins in the liquid market
place remain ‘wafer thin’, and as ASDA’s CEO
recently declared that their “4 pints for a
£1” would remain unchanged. Creative
strategies to generate added value from milk
will therefore continue to be required.
Following the economic pressures delivered
on farm through the poor 12/13 milk year,
recovery from this has been helped by the
improved returns applied across all DC contracts this year. Standard liquids increasing
by +3.50p and Davidstow +4.25p. But it
remains our members on standard liquid contracts that remain under most pressure. The
progress therefore being made to develop
and deliver a new simplified liquid contract
during 2014 being an important additional
contract option. The provision of alternative
Dairy Ingredient Prices - NOVEMBER 2013
Source Dairy Co Datum - next review due 16th December
Nov 2013 Oct 2013 Nov 2012 Yr on yr change
Butter
SMP
Mild Cheddar
Mature Cheddar
Cream
Whey Powder
AMPE*
MCVE*
£3,500/t
£2,650/t
£3,450/t
£3,650/t
£1,750/t
£ 782/t
35.90p/l
36.90p/l
£3,600/t
£2,675/t
£3,450/t
£3,650/t
£1,700/t
£ 778/t
36.70p/l
37.00p/l
£2,850/t
£2,400/t
£2,925/t
£3,200/t
£1,480/t
£ 784/t
30.50p/l
30.90p/l
In
reply,
DCD
Chairman
David
Herdman reflected
on
almost
ten
years since establishing DCD. A period
where
we
remain one of the
only truly independently, electorally
accountable groups of UK
dairy farmers. A
decade
where
progress has been
made within our
supply chains.
+£ 650/t
+£ 250/t
+£ 525/t
+£ 450/t
+£ 270/t
-£
2/t
+ 5.40p/l
+ 6.00p/l
+22.81%
+10.42%
+17.95%
+14.06%
+18.24%
- 0.01%
+17.70%
+19.42%
* AMPE/MCVE adjusted less 1.5p/l for delivery to the dairy.
price competitive contracts remains a DCD
priority.
Another major change that has impacted on
2013 has been the impact of the Voluntary
Contract Code. DCD commends Dairy Crest
for it’s early sign up, and it’s adherence to
the Code. This is regarded as a significant
advantage to DCD members, an advantage
that remains illusive to so many other farmers supplying alternative non Code
Compliant processors.
Following the Forum ‘scene setting’ by Mark
and David, DCD Reps from all areas then
held an open session where a productive
debate ensued between your reps and the
DC team. For more details, do contact your
own DCD Forum Rep - contact numbers found
on the website, www.dairycrestdirect.co.uk
Davidstow Member
Meetings - Reminder
2ND DECEMBER AT 7:20p.m.
(starting with a buffet supper)
Lakeview Country Club, The Old Coach
Road, Lanivet, Bodmin, PL30 5JJ.
3RD DECEMBER AT 11:00a.m.
(concluding with buffet lunch)
Holsworthy Memorial Hall, Manor Car
Park, North Road, Holsworthy, EX22 6DJ
.
Dairying in the UK is going through a period
of rapid evolution, not least at the
Davidstow Creamery itself with DC's branded
and global market facing investments.
DCD has opted to change the
format of this year's Member
Meetings, inviting a third
party perspective into the
sessions. In addition to the
DCD and Dairy Crest updates,
DC's Mike Sheldon will present, as will Dairy Industry
Analyst, Ian Potter.
DC Price In Context with AMPE/MCVE*
Subject matter under discussion will also include:-
News Round Up
White Gold Workshops - December
What is the biggest cost associated with lame cows?
Why does an extended Calving Interval cost up to £7.40/per day?
Do heifers survive long enough in the UK?
These meetings will provide the very latest research into the costs
involved with Herd Health issues. Importantly they will also provide
you with access to added services via your White Gold Advisor
through the tailored offerings to suit your farm.
Herd Health Issues in £’s...the real costs...
Guest speaker at each of this year’s White Gold Workshops will be
the nationally renowned cattle vet specialist, Alistair Macrae from
Edinburgh University’s Dairy Herd Health & Productivity Service.
Alistair has worked for very many years with the White Gold Service
and supported development of White Gold herd health initiatives.
This year’s interactive sessions will focus on the information that you
are asked to collate as part of your medicine and herd health recording for Red Tractor Farm Assurance compliance. But rather than this
being just an administrative requirement, Alistair will lead the discussions translating this recording process into a new valuable White
Gold offering providing tangible financial benefits to help manage
your business.
UK Milk Production
The chart (below) reports the very latest
Dairy Co recorded daily production data to
23rd November. Milk production remains
strong for the time of year, and unusually
has remained remarkably stable since
August. Latest production reports indicate
an increase above this time last year of
+8.6%, or +2.8m litres/day.
Buffet supper will be served in advance of all evening meetings, and
at the conclusion of all day time meetings.
Alistair Macrae and the White Gold team look forward to seeing you
at one of the forthcoming sessions:
during the past 15 years, only two other
Octobers have produced greater UK milk volumes, 2003 and 1999.
retrieval, and do follow the protocols in full.
Finally, do ensure that insurance cover is
secured as a last resort contingency.
The tremendous rate of evolution in the
dairy sector can certainly be demonstrated
between the comparison with the number of
UK dairy farmer numbers vs. milk production
during the past decade:
Oct 03 23,000 farms; Oct 13 14.549 farms.
Dairy Pro
EU milk production is has also increased, as
a result, several EU states are now in an over
quota position, milk cheque deductions
resulting and production ‘brakes’ applied.
This action should help dairy markets into
2014. Although quotas wont directly remain
a concern for UK farmers, their removal, and
the impact of EU production expansion post
2015 will alter the dynamic considerably.
Weather Contingencies
The most recent RPA data recording monthly
production reported an increase of +97m
litres for the month of October 2013.
Deliveries of 1.091bn litres is the highest
October production for ten years. In fact,
Useful Contacts:
Your DCD Forum
Member
Forum contact details can be
found via the DCD Website or
via the Dairy Crest
Farm Connect website
Thank you to all who have been prepared to
help with the DCD Communication Cascade
for this winter. Almost all Forum Region
details have been processed, with full protocols being circulated. If you havent received
your details yet, these should be completed
shortly. Please keep these safe for easy
DCD Office:
Michael Masters
T:
01458 835060
M:
07729 788767
F:
01458 833007
E: [email protected]
W: www.dairycrestdirect.co.uk
Please see the enclosed leaflet re Dairy Pro.
The key benefits of membership are:
• Formal recognition of commitments to
learning and continuing professional development. Research shows that businesses
that invest in training and development,
tend to see the results in their profitability
• A personal profile recording the training
you’ve undertaken, available from the Dairy
Pro web site 24/7.This will be valuable if
seeking financial support when Earned
Recognition is with Farm Inspection Plans
• Access to a calendar of national auditapproved training events, making it easier to
find the right events in your area. Over 60
different organisations that provide training
and events already registered with Dairy Pro.
• Dairy Pro points are awarded for formal
training courses, attendance at conferences
and seminars, farm open days, discussion
groups, in-house training, webinars, subs to
specified publications, and other events that
improve knowledge and skills necessary for
successful dairy farming.
Dairy Crest Farm
Business Centre:
Freephone: 0800 121 4766
[email protected]
Agri assist:
Electricity: 0844 887 1114
Footprinting: 01452 720053
White Gold: 0845 873 1410
Dairy Crest Direct Limited, Registered in England and Wales, Company Number 5094434
Registered Office: Hill Farm, Longney, Gloucestershire, GL2 3SW