Ian Potter Associates Weekly Bulletin 17th March 2017

Issue No: 891

Today / Last Week / Change / 4 Weeks Ago / 1 Year ago
Producers in E & W / 9,464 / 9,477 / 9,598
£ : $ / 1.23 / 1.21 / +0.02 / 1.24 / 1.42
£ : € / 1.14 / 1.13 / +0.01 / 1.16 / 1.29
Crude Oil / $51.89 / $51.24 / +$0.65 / $56.11 / $40.66
AMPE / 28.3 (February) / 30.5 (January) / 16.0 (February)
MCVE / 32.3 (February) / 33.7 (January) / 17.4 (February)

(Commodity and currency prices – source ForFarmers)

For more information about feed prices and market trends visit www.forfarmers.co.uk or contact ForFarmers DML: 0870 0500306

AVAILABLE ENGLISH BPS ENTITLEMENTS

No. of Ent’s / Entitlement / Price/Entitlement / Use by date
5.51 / NSDA / £175 ono / 2018
26.84 / NSDA / £200 ono – No VAT / 2018
9.93 / NSDA / £180 ono – No VAT / 2018
16.15 / NSDA / £175 ono / 2018
5 / NSDA / £175 ono / 2018

All Entitlements are subject to availability and vendor acceptance:

If you are looking to sell or purchase English Entitlements please contact Jacquey at the office - Tel. No. 01335 324594 – Email

2016 Subsidy Payment Comparison (2015 in brackets)

Exchange Rate / 0.85228 (0.73129)
Non SDA / £211.64/ha (£178) or £85.65/acre (£72)
SDA / £210.11/ha (£177) or £85.03/acre (£72)

Note, all standard litre prices are those quoted by www.milkprices.com and are based on the following:

The liquid standard litre 4% bf, 3.3% protein, 30,000/ml Bactoscans, 200,000/ml SCC, 1 million litres a year on EODC but before seasonality, monthly profile payments, balancing, B price additions, capital retentions or annual incentive schemes.

The manufacturing standard litre is to exactly the same specification with the exception of 4.2%bf and 3.4% protein.

TWO DAIRY CEO’s STEP DOWN WITHIN DAYS OF EACH OTHER

1.  Mike Gallacher steps down as First Milk’s CEO – Turnaround Job Done

Mike Gallacher is to step down as First Milk’s CEO and turnaround guru in April and into his shoes will step Shelagh Hancock.

It’s a near as damn it 2 years to the day since Gallacher was parachuted into First Milk and at the time the co-op was on life support and at best only weeks away from the life support machine being turned off. It wasn’t quite as bad as DFOB but it was looking like a sick dog which needed putting out of its misery. The dairy industry’s vultures were circling all eager to pick over the carcase but none wanted to be first to swoop in. It was a badly run business and the one thing the First Milk board did get right was to re-shape, re-group and give Gallacher a free hand.

As Gallacher leaves, he hands over a very different business and whilst it will still have to operate profitably in a challenging environment it’s a fact today there are other UK dairy businesses in worse shape than First Milk.

It’s unusual to see dairy CEO’s involved in a smooth planned succession but this is one such case. Normally it’s a sacking dressed up with lots of spin.

Gallacher’s successor, Shelagh Hancock, has 25 years of experience having been involved with the First Milk business for almost 12 months. She has previously worked for Glanbia, been a key figure in Milk Link until the Arla takeover and latterly Medina Dairies.

Shelagh is essentially a co-op person and will steer First Milk on the same course Gallacher has set with little, if any, need for a change in direction. There is already at least one new opportunity on her desk for her to explore and still plenty of stuff to keep her occupied.

It’s almost 2 years to the day since Gallacher took charge and he certainly can claim to have turned around the First Milk business much to the relief of its members who have seen their co-op go from life support to being discharged and sent home in less than 2 years.

Next week the two commence a GB member meeting tour to inform members of the turnaround results, direction of the business, current milk field issues (especially the Tesco field connected to the Haverfordwest factory), farm contract developments/ideas and the opportunity to meet their new CEO.

Ronald Kerrs to leave Muller

The departure of Ronald Kerrs as CEO of Muller and the arrival of Uwe Sommer doesn’t appear to have been on the cards for months and part of a smooth succession plan.

Kerrs came to Muller in 2012 initially as Head of Muller UK before taking the position of group CEO in 2015. He has certainly made his mark so far as the UK dairy industry is concerned having been involved in the Dairy Crest liquid business takeover as well as building a new butter plant at Market Drayton. On May 1st Sommer steps into one of the most important dairy roles in Europe having left his role as Head of International Marketing at Lindt Chocolate.

SMP Intervention tenders halved as interest plummets

The latest EU Commission SMP intervention stock tender resulted in just two bids for only 136 tonnes compared to bids for almost 20,000 tonnes in December.

The current two tender windows each month will be reduced to one and there seems minimal prospect of any product coming out of store unless the EU Commission significantly reduce their minimum price.

First Milk add to their trophy cabinet

Last night First Milk won Nestle UK’s Supplier of the Year Award as well as a Nestle Quality Award, both collected by Mike Gallacher. Both are viewed as further ringing endorsements that the co-op and its members are on the right track with its major customer.

50 Muller suppliers to battle it out for 21 forum places

Healthy competition is the order of the day in some of the Muller farmer forum regions with 50 candidates competing for 21 places. Ballot packs will be sent to members next week with the elected board to be insitu next month when their task will be to represent 1900 Muller suppliers. Let’s hope the 21 selected have ability to represent their area and it’s not noisy ones with confidence but little ability.

PLEASE READ THIS - ENGLISH MINI BULLDOGS ON TOUR AGAIN!

Back in 2015 Ian & Carole travelled to New Zealand and joined the Pork Pie Charity Run (www.porkpie.co.nz) in a classic Mini and raised £6,600 for charity. In three weeks time the intrepid duo are taking to the wheel again and driving Ian’s 1963 Mini Cooper S to Rotterdam for a weekend to raise money in the 20thand final Regis Ladies Classic Car Tour.

100% of your donations will go to the two charities named below, as Ian & Carole are self funding all their own expenses, entry fees and accommodation.

This final 20thRegis Classic Tour is supported by a host of companies and individuals who have donated money, prizes, auction items and services to help this group of ladies finish their 20thannual tour with a bang. During the past 19 years the tour has raised a staggering £524,000.

Ian, more than anyone, fully appreciates how difficult the past two years in UK dairy farming have been. If you can dig deep and find a few spare pounds it will all be very much appreciated. It’s not a competition who can give the most but if you do value this regular bulletin and Ian’s monthly Dairy Farmer article (now 26 years and still going) then please give a little to show your appreciation.

The event is not a charity challenge, but more of a non-competitive social weekend with like minded classic car enthusiasts aiming to have a spring tour at the same time as raising money for two great charities. I doubt there is anyone who is reading this bulletin who has not had at least one friend or family member affected by cancer.

So please sponsor Ian & Carole where you can, and don't forget you can increase the amount you donate with Gift Aid (individuals only, not companies).

Please donate on line by clicking on:http://uk.virginmoneygiving.com/fundraiser-web/fundraiser/showFundraiserProfilePage.action?userUrl=EnglishMiniBulldogsOnTour&isTeam=true

OR

Send a cheque(s), made payable to either:

“Orchid” (Fighting male cancer)

Or

“Against Breast Cancer”

Ian will update readers each week as to his fund raising progress and will provide a few photos of the tour.

Thank you all in advance.

Few things in life are for free & if you enjoy reading this bulletin then please give us a chance to quote next time you order livestock tags!

We have a fantastic bulk deal on BVD tags and are now offering them at incredibly competitive prices! We also offer a full range of visual livestock tags. Please don’t hesitate to call the office on 01335 320016 or email for more information, alternatively go to our website http://www.ipaquotas.com

BVD Tag Permutations / Ian Potter Associates Price
Large & Large / £4.30
Large & Button / £4.30
Large & Metal / £4.30
Medium & Medium / £4.30
Medium & Button / £4.30
Medium & Metal / £4.30
Match up tag / £4.20
Large BVD tag Only / £4.20
Management BVD / £4.20
Applicator / £15.00 (free with large orders)

Remember this bulletin at the moment continues to be available free of charge and takes Ian the team considerable time to produce. The only encouragement to keep producing it is a combination of enthusiasm as well as tag sales enquiries from our readers.

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 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 any liability for any errors or omissions. Professional advice must always be taken before any decision is reached.