By Olivia Cooper
AFTER two months of very low milk production, better weather is helping output recover.
Charles Holt, of the Farm Consultancy Group, expects milk production for June to end up at about 1.2 billion butterfat-adjusted litres. That is about 26 million litres more than May, which should have been the peak month, and well above last years June figure of 1.168 billion litres.
But, even if June does end up near profile, production will be way below quota for the year, he predicts. “We were so far down in April and May, which are the crucial months.”
With many potential lessors taking the same view, leased quota values remain static at 0.5-0.9p/litre, depending on butterfat.
Sales of quota have eased slightly to 11.5-12.75p/litre due to restricted cash flow on many dairy farms.
“Of the 100,000 dairy cows that have been slaughtered due to foot-and-mouth, at least that many again have been kept on farm due to the lack of the over-30-months scheme,” says Mr Holt.
While this may be adding to milk output, many farms are overstocked. Winter fodder is already being used, which could reduce milk yield over the winter months, he adds.