Quota demand hit as milk production falls
MILK production slipped further below profile in September, latest figures from the Intervention Board reveal.
Butterfat-adjusted deliveries for the month, at 1.07m litres, were 3.61% below profile. But cumulative output since April remains 124m litres (1.74%) ahead of target.
"Not good news from a quota sellers point of view," said Townsends Mark Dyson. Demand for quota was immediately hit as news of the figures spread, he said, compounding the effects of lower milk prices. Leasing and sale samples are worth about 9p and 45p/litre, respectively, he said.
Mark Bray of ADAS was not surprised by the figures, saying they merely reflected an inaccurate quota profile.
But a lot of potential lessees are still holding off, hoping for price falls, he added.
More have also opted to buy, spreading payments over several years, with IB figures showing nearly 20% more quota permanently transferred this year than at the same point last season.