Milk output 140m litres over profile

By FWi staff

THE last milk production results released by the Intervention Board before the end-of-December deadline for leasing quota show the UK remains way over profile.

The overshoot is140 million litres – or three-and-a-half days production – for the milk year so far.

Although November milk output was just 0.4% above the monthly profile, the fact that butterfat was 20 points over base means an awful lot of milk, said George Paton of WebbPaton quota agents.

He believes these figures will put further pressure on already high quota prices and many farmers will have to radically rethink what they are doing.

“Farmers cannot produce milk and not think of quota. There have been indications of over-production for three to four months and people have done nothing.”

Mr Paton is also concerned that confusion about the end of lease trading has led to many producers thinking they can leave their quota needs until March.

“It is very important to stress that leasing finishes on 31 December this year, and is not extended until March 2001,” said Mr Paton.

And the banks are only open two days between Christmas and New Year, so well struggle to trade much after 21 December, he said. “A lot wont have taken that into account, and that worries me.”

But Charles Holt of the Farm Consultancy Group does not think that quota prices will rise much more following the new figures. “No one can afford it – theyll cut back,” he said.

“I think well see a big exodus over the next three months. The surplus is at its peak and farmers will do all sorts of things to cut production.”

Mr Holt said he had a number of producers who had been seeking quota, but had now phoned and cancelled. “Theyll be bringing forward plans to get out.”