8 September 2000

MILK production rose above its monthly quota profile for the first time this milk year during August, according to the latest provisional Intervention Board figures.

Almost 1.145bn butterfat-adjusted litres of milk was delivered to purchasers during the month, 6.3m litres, or 0.55%, over profile.

July output has been confirmed at 1.179bn litres. This means production was 4.3m litres below profile, compared with the 9.8m provisional figure.

Cumulatively, the UK remains well under quota, with a shortfall of more than 148m litres, almost four days supply. In August 1999, an excess of 43m litres was produced, taking the UK cumulative to almost 106m litres over quota.

BK National Quota exchange anticipates the latest figures will continue the stalemate between vendors/lessors and producers. It must be remembered that 148 million litres is still a long way under quota.

Peter Weston Davies of the Farm Consultancy Group says: Agents put up leasing by 0.5p/litre since the start of the week, as they have done every time the production figures have been due out.

When the figures were well under, they let themselves be beaten down the same amount. Now production is over quota, they will make every effort to see the rise sticks.

Leased 4% butterfat supplies are trading at 4p/litre. If you need some, cover some requirement now. But dont stick all your egss in one basket, he advises. Sales quota is put at 19.5p/litre at 4% butterfat.