Milk slides from peak into summer trough
MILK production peaked in May, according to latest figures from the Intervention Board, and has now started to fall into the so-called "summer trough".
In volume terms, Mays deliveries were almost identical to last years at 1.312bn litres. But butterfat was lower, leading to a slight drop in adjusted deliveries. These stood at 1.354bn litres – or 3.27% over the Intervention Boards new quota profile.
Cumulatively, UK output is now 135m litres (5.4%) over quota after the first two months of the milk year – equivalent to three days supply.
Following this "milky" start, and coupled with more bullish news about the long-term prospects for quotas from Brussels, quota prices have firmed to 53p/litre for 4% butterfat lots, and over 11p/litre to lease.
Anecdotal evidence from the trade, however, points to a slowdown in deliveries to milk factories with more capacity now becoming idle.n