Milk quota climbs on increased interest

By FWi staff

INCREASED demand for milk quota finally pushed up prices this week, with too many farmers chasing limited supplies

Agents say a lack of available quota caused prices to remain firm. Milk quota for sale at 4% butterfat gained 2ppl on the week and is currently trading at about 36ppl.

Purchasers appear to be wary of possible price rises in the coming months, and are purchasing a proportion of their annual needs now, rather than waiting for later.

But it appears that many vendors are still trying to hold out for better prices, causing values to rise.

Leasing prices remain stable, however. Steady interest from both lessees and lessors has prevented prices from rising and 4% butterfat quota can be leased for 7ppl – the same price as last week.