Milk production falls short again

MILK production has fallen below profile for the fourth successive month, according to provisional figures released by the Intervention Board today (August 07).

July output of just over 1.17bn butterfat-adjusted litres fell short of quota by nearly 10 million litres or 0.83%. cumulative production for this milk year is now running about 160m litres below profile.

“Farmers were expected to be under profile this month with many of them still very reluctant to take on more quota,” says Charles Holt of the Farm Consultancy Group.

“I think we will see very little change in the market, with prices remaining at similar levels. Leased quota may drop slightly, but sales will stay where they are. It is usually a quiet time of year anyway, with most farmers doing other things.

“Producers arent that much below quota, although there is still some catching up to do – but we are only a quarter of the way through the season.”

Leased 4% butterfat quota is trading at 3.4ppl with 3.79% supplies 3.2ppl.

Clean quota sales are trading at about 17.5ppl for 4% butterfat supplies, with 3.75% butterfat at 16.25ppl.