Milk outputs huge increase
Milk outputs huge increase
MILK production in the first month of the new milk year was massively up on last year with the highest April volume since 1990.
Provisional Rural Payment Agency figures released on Wednesday (May 8) put April production at 1.27bn litres, 43.7m butterfat-adjusted litres over the Charles Holt/farmers weekly profile.
"It is just unbelievable," says Ian Potter of quota agent Ian Potter Associates. "No wonder the dairy industry is struggling to sell this milk." Although traders had expected production to be very high, the extent to which yield has risen has come as a complete surprise.
But Mr Potter does not reckon the figures will have much effect on quota prices, which had already risen by 0.5p/litre over the past fortnight. "Prices have been slowly notching up and I do not think the balance will be upset by these figures."
Charles Holt of the Farm Consultancy Group says the lower milk prices should keep quota values from over-reacting. "They could rise a little but the affordability really is not there." Leasing of 4% butterfat quota has risen to 3.2p/litre, while sales are following a similar trend at 18.75p/litre. *