24 November 1995

Firmer prices for milk quota

WITH limited supplies being offered, milk quota leasing prices have firmed.

And with the close of the trading period just three weeks away (Dec 15) agents say prices look set to nudge up further.

At Sturminster Newton, where 600,000 litres averaged 12.6p/litre on Monday (Nov 20), auctioneer Lester Williams says the rush could take values up as far as 15p/litre. "We have traded 15% more than last year, so it is going to be hard to find from now on."

At Chelford, meanwhile, where 2.7m litres levelled at 12.1p/litre on the same day, James Holdroyd says the "cut-off point" could come at the 14p/litre-mark.

Supply could improve in the closing days, says Justin Lowe of Yeovil-based R B Taylor and Sons. "But there are a lot of farmers still needing as much as half of their quota requirement."

Sale values, meanwhile, have also firmed with 4% butterfat lots trading between 60p and 62p/litre early this week.