By FWi staff
MILK quota leasing prices have soared over the past week as producers over profile frantically try to secure quota before the end of trading.
Many quota agents say they have now run out of leased quota and a number have finished trading.
Leased values have risen to 9.75ppl for 4% butterfat and 9pp for 3.8%. But at some auctions prices have climbed to over 10ppl.
There are still a number of producers looking for as much quota as 200,000 litres, said Jim Leamon of Hamiltons quota agents.
But the time to obtain leased quota has basically run out and those still yet to buy now have the option of buying clean quota or cutting cows, he said.
However, Mr Leamon warned that if producers cut back cows dramatically they would never bring them back to full potential.
Clean sale quota firmed slightly over the week as more producers switched from lease to sale. 4% butterfat is trading at 34.5ppl with 3.83% at 33ppl.
Used quota has remained stable. Some think that supplies of used will increase considerably after January because some over-quota producers will need to sell used to finance purchases of clean quota, said Mark Dyson of Exeter-based Townsend quota agents.
“This, with the falling milk price next year would cause a reduction price.”
Used quota of 4% butterfat is trading at 24.5ppl and 3.79% at 23ppl.