MILK PRODUCTION in September fell 26.6m litres below last year, but at 1.07bn litres was slightly higher than the same month in 2002.

Rural Payments Agency figures released on Thursday (Oct 7) show that the UK has now produced 7.14bn litres in the year to date, compared with 7.42bn last year and a five-year average of 7.2bn litres.

Butterfat continues at higher levels that last season, at 4.04% in September – the highest for the month since 2000 and 0.02 points above last year.

Cumulative butterfat is now pegged at 3.90%.

Quota prices had eased as producers awaited the production figures, said traders, with plentiful supply of both leasing and sales of quota.

Sales of 4% butterfat were pegged at about 16.5p/litre, with leasing at about 8.75%, they said.