Ian Potter Associates s1

IAN POTTER ASSOCIATES 2nd December 2011

Specialist Agricultural Quota & Entitlement Brokers

Telephone 01335 324594 Fax 01335 324584

Website www.ipaquotas.co.uk Email Issue No. 649

(Commodity and currency prices – source BOCM Pauls)

Milk Quota Available

999,883 litres 3.96% @ 0.25ppl

386,339 litres 4.00% @ 0.30ppl

1,038,024 litres 4.04% @ 0.25ppl

Should you require any information or prices on available milk quota, please contact

1ppl milk price increase to 26 Arla Organic suppliers – from 1st December

This takes their standard litre price to 35.5ppl

Dairy Crest Direct (DCD) members challenge Dairy Crest

Following last week’s bulletin highlighting A1 supermarket’s unbelievable 6ppl sale of Dairy Crest’s (DC) branded Country Life milk, DCD, on behalf of its members, questioned DC over their commercial activities, the promotions and the role they play. DCD confirmed they had received calls from a number of “angry/frustrated DCD members.”

In a written response from Dairy Crest’s Commercial Director to the Chairman of DCD the company refer to Ian’s article as a “tale”, but it certainly was not.

DC state that they believe DC supply less than 50% of Johal Dairies liquid milk requirements (who supplied the cheap milk), with the balance supplied by Wiseman and Freshways. Fine, but for some reason it was only the Country Life milk which was on promotion at 6ppl. DCD members should perhaps ask why.

The letter also stated that the milk was only sold for a short period of time. That’s true, for three days. But what they didn’t say is that whenever one shop gets cheap milk like that other shops want cheap milk too. And this makes it impossible to lift the milk price in the middle ground.

However, DC did confirm “we are very surprised by this and do not like to see our milk promoted in this way.”

Ian’s agenda is not, as suggested in the letter, to pick out DC as being solely responsible for this type of promotional activity. To help Ian please can some of the many readers of this bulletin who are responsible for or see similar promotions let Ian know.

Free milk now on the cards . . . and you guessed it! It comes from Dairy Crest!

Last week milk was being sold for 6ppl. This week there’s milk being given away free! Dairy Crest’s Milk & More doorstep delivery service promises “Everyday low prices”, and this week is giving a free pint of 1% milk when customers by any pack of Kelloggs’ cereal. DC say the promotion is designed to increase sales via the Milk & More scheme.

Let’s hope it succeeds, but why doesn’t it come up with another kind of promotion that doesn’t involve milk? It surely realises it is getting a reputation among farmers for selling cheap milk, and such promotions only exacerbate this view. Its 0.2% profit margin in its latest accounts clearly shows it’s making nothing on its liquid milk so something has to change.

Wisemans share price reaches 5 year low

At one point today the one trick pony Wisemans share price hit the rock bottom at 220p before recovering to 250p. Their high point in the last year was 360p and at one stage during the past 5 years reached a top of 570p!

First mIlk purchased 11.3million shares in Wisemans for 250p and then cashed in 4 million in November 2009 for 450p leaving 7.1million share they retain today.

Job cuts at Muller factory

The dairy industry news regularly focuses on the ruthless world of liquid milk and cheese promotions, however, news of 52 potential job cuts at yoghurt manufacturers Muller Dairies’, Market Drayton factory confirm they face similar pressures. The factory currently employs around 700 staff and a spokesperson within the factory stated that they need to reduce their base cost and increase efficiencies. Once done, their new CEO Ronald Kers will drive through planned growth initiatives. A 30-day consultation with staff has commenced and goes from the top to the bottom.

Are Alaister Mac’s election aspirations back on track?

Last week’s article concerning the eagerly awaited NFU AGM and elections was evidently mis-interpreted by one or two readers, either for genuine or mischievous reasons. So let me clarify the position.

The NFU has concluded a thorough internal investigation into accusations of financial irregularities involving Livestock Board Chairman, Alastair MacIntosh. The NFU’s Director General Kevin Roberts will formally report his conclusions and why he has drawn them to the NFU’s Governance Board and Audit Committee in due course. However, he has once again reiterated to Ian that absolutely no irregularities concerning MacIntosh’s NFU expenses or diary have been found.

In addition, Roberts can find no evidence of influence from MacIntosh in connection with NFU money being directed towards the Ladies in Beef (LIB) campaign. The £45,000 (actually £37,000 plus VAT) was paid to an external third party PR agency to provide seed corn for the launch and ongoing PR for LIB. And also for the record, neither Ian or anyone for that matter has questioned or is questioning the LIB initiative, which also received major retailer backing and has already demonstrated it has delivered more bangs for its bucks than some other sector investments.

So to clarify, as far as the use of NFU monies goes MacIntosh has got the all clear, which is good news for him and his supporters for the top table posts. All he has to do now is convince the NFU council that he can conclude any outstanding personal matters quickly, devote 100% to the NFU and is the best man for the job.

NFU Elections update

Farmers Weekly and FWI interactive have an interesting and thought provoking article covering the current NFU election candidates and their positions, courtesy of top hack Johann Tasker. See http://www.fwi.co.uk/Articles/02/12/2011/130370/Where-will-the-NFU-find-its-leaders-now.htm#.TtiqMLLnPfc.twitter.

MacIntosh is quoted as saying that “Anyone who knows me knows that I have always given 100% to the NFU and there is no reason for that to change.” Reading between the lines he will remain a very serious contender.

It is an undisputed fact that with only 5 candidates for 3 top positions it’s not exactly an indication that the NFU’s succession policy is healthy and vibrant. The quirky voting system with its 75% rule could produce the odd surprise casualty. Let’s hope during the next 2 to 4 years progress can be made to encourage more potential top table successors.

Fullwood Midget Portable Milking Machine

On Ebay ends 19:22 hours – Sunday 11th December 2011 – Ebay Item No. 270865234789 - http://www.ebay.co.uk/itm/270865234789?ru=http%3A%2F%2Fwww.ebay.co.uk%3A80%2Fsch%2Fi.html%3F_from%3DR40%26_trksid%3Dp5197.m570.l1313%26_nkw%3D270865234789%26_sacat%3DSee-All-Categories%26_fvi%3D1&_rdc=1

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