Daily milk deliveries are up 10% on a year ago, according to recent figures. UK deliveries for the two weeks to 19 October averaged 35.2m litres a day – 3.2m litres a day higher than for the same period in 2012.
Daily deliveries for this period were 1.5m litres higher compared with the three-year average, equivalent to 4.5%.
Meanwhile, wholesale prices showed some downward movement in October. Production was high for the time of year, said DairyCo, with collections outpacing the three-year average, leading to a general expectation that wholesale prices will weaken.
“Buyers with sufficient short-term product coverage are adopting a ‘wait and see’ attitude, which is dampening demand,” said DairyCo.
On average, prices for October were £40/t, or 2% lower than in September at £1,700/t.
The improved availability of milk saw prices for bulk cream decline through the month.
“With milk deliveries strong for the time of year, the tight supply situation has eased. However, demand was reported to be firm through the month, which kept the market relatively stable,” said DairyCo.