Dairy Roundup January 29, 2015 12:00 am It has been a difficult month for all in the dairy industry with some still coming to terms with the First Milk bombshell. For those in financial difficulty, DairyCo is offering levy payers free consultancy advice (see DairyCo article). But perhaps there are tentative signs of the market stabilising, with the gradual improvement in the Fonterra GDT auction results. The latest figures show a 1% increase in the overall auction index. WMP and SMP both saw improvements compared to the last auction of 3.8% and 1% respectively. The next auction will take place on Tuesday 3rd February and all eyes in the industry will be on it hoping for further improvements. Another move which should help prices during the spring flush is that EU Farm Commissioner Phil Hogan has announced that the window for Private Storage Aid (PSA) will be extended from February until the end of September 2015. Prices Perhaps in recognition of the latest Fonterra auction (see above), Arla Foods has confirmed that its milk price will remain unchanged for February. There will also also be a small, 0.06ppl, increase to the 13th payment. Other notable moves include; The Dairy Crest formula price will be cut by 0.262ppl from February, although it is still nearly 4.5ppl ahead of the Dairy Crest standard liquid contract price at 29.02ppl. A cut in cream prices was the main reason behind the recent drop. A 0.67ppl cut for Muller Wiseman Co-operative suppliers from 1st February. Production The latest figures show production still remains way ahead of the previous year. Deliveries for December stood at 1,185.2 million litres, 3.6% above year-earlier levels. Cumulative production is now 7.1% up year-on-year, at 10,865.6 million litres. Cumulative butterfat levels are currently at 3.97% compared to 4% at the same time last year.
