Market report: Daily milk output lags last year

Daily UK milk deliveries peaked at 40.1m litres on 8 May, a week later than last year’s peak, according to DairyCo Datum’s latest report.

Although milk deliveries were below the three-year average of 40.3m litres, they were 700,000 litres (1.8%) higher last year’s peak.

Daily milk deliveries averaged 39.6m litres for the first 15 days of May, 1.3% (500,000 litres a day) above the same time last year but 500,000 litres a day (1.2%) below the three-year average.

Meanwhile, the latest United Dairy Farmers milk auction in Northern Ireland sold a total of 52m litres at an average price of 26.53p/litre – 0.45p/litre up on last month. This was the highest May price in the past 10 years and 38.2% above the same time last year.

The higher prices reflected improving global wholesale markets and growing optimism for cheddar prices within the UK, said DairyCo. “It is therefore likely that competition for milk supplies was strong in the auction, with buyers seeking to fill manufacturing plants in order to take advantage of market opportunities.”