By FWi staff
MILK production during February was above profile for only the second time this milk year, according to latest provisional figures released by the Intervention Board.
Last month producers delivered 1.07 billion butterfat adjusted litres, 1 million litres or 1% above profile.
That takes the cumulative total to 12.45 billion litres, just over 350 million litres below profile.
“Had it not been for the foot-and-mouth outbreak, the figure would have been lower, possibly below profile,” says Peter Weston Davies of the Farm Consultancy Group.
Movement restrictions have held extra cows on farm, and there is a significant number that would otherwise have been sent away, he adds.
The foot-and-mouth crisis has also lead to a surge in lease quota deals for the current milk year, following the proposals by MAFF to pay agrimoney compensation to dairy producers, based on quota held at 31 March.
“This has pushed the price up. A week ago lease quota was worth next to nothing and it is now 0.3-0.4ppl,” says Mr Weston Davies.
Enquiries for forward leasing are also starting to pick up after a quiet week last week, and prices have firmed at 2.4ppl for 4% butterfat.
“Unless the foot-and-mouth crisis escalates dramatically, forward leasing is as low as its going to get. With monthly production figures increasing this will only put upward pressure on the quota market.”