Leased quota demand down ahead of milk production figures

By FWi staff

DEMAND for leased quota has eased slightly this week as producers sit on the fence awaiting production figures, said Mark Dyson of Townsend Chartered Surveyors.

“Lessees are waiting for lower production figures,” said Mr Dyson. And he expects demand to be unenthusiastic until the middle of next week when figures are produced.

Weekly supply figures look as if producers could be under quota by as much at 15 million litres, said a spokesman from Lovedays Agricultural Auctioneers.

But Mike Taylor, of Barber and Son chartered surveyors, disagreed that demand has weakened. At a quota auction this week he noted that interest had strengthened further. Prices at the sale averaged 8.6ppl with 4% butterfat selling at about 8.7ppl.

And the production figures dont seem to bother people, he said. “Im not sure how much producers trust the figures anyway. Many take them with a pinch of salt as theyre not always up to date.”

Prices inched up slightly this week to 8.4ppl for 4% butterfat and 2.8% at 7.8ppl.

Despite an increased supply of clean quota entering the market demand has eased and vendors are holding out for higher prices, noted a spokesman from ADAS Quota Direct.

“With the focus on the lease market, little quota is being traded,” he said.

Clean quota prices nudged up this week with 4% butterfat trading at about 38ppl. 3.8% butterfat is at 35ppl.

There is a high demand for used quota, said Andrew Fallows of Carter Jonas. “And supply is limited. Although we have more coming onto our books we are almost exhausted at the moment.”

Prices for used milk quota firmed this week with 4% butterfat at 31ppl.

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