9 November 2001

Milk figures up, but…

MILK production for October was considerably above that for September, according to latest figures from the Rural Payments Agency (previously the Intervention Board).

Estimates show butterfat-adjusted production was 20m litres ahead of last month at 1.081bn litres, but still 22.5m litres below Charles Holts profile.

Tony Carver, of Carver Knowles, was surprised at the leap in production: "This is a lot better than the weekly figures had suggested."

Nevertheless, the UK is still 168m litres cumulatively below profile, leaving an awful lot to make up to reach quota.

Quota prices have eased, but this is not due to changes in production, says Mr Carver. "Most dairy companies dropped their milk prices, so demand for purchase of quota is not quite as strong as it has been."

Prices have slipped from a high of 19.5p/litre two weeks ago, to about 18p/litre today. Demand for leasing has been quiet awaiting the production figures, and prices are steady at about 0.7p/litre. &#42