Milk production slipped again this month, with dairy farmers delivering just 1157m litres to processors.

Adjusted for butter fat, this falls to 1155m litres, 69m litres of 5.6% below the Charles Holt/ Farmers Weekly quota profile.

This leaves the dairy sector 265m litres below profile in the second quarter of the quota year.

Charles Holt of the Farm Consultancy Group said there was now “no chance” of dairy production matching quota in 2006-2007.

A cold, wet spring and early summer, followed by July’s heatwave, had made forage production very difficult, he said.

Leased quota values were unchanged at 0.2p/litre with purchased quota about 1.5p/litre.

“The only people taking leased quota are those who need it to release milk cheques,” said Mr Holt.