Quota in demand as milk production surges

By FWi staff

A SUDDEN upturn in the weekly production figures and the pending end to the quota year has caused a surge in demand for clean and used quota.

The 53 million litre shortfall in production will be wiped out, forecast Mark Dyson of quota agents Townsend.

Mr Dyson based his prediction on the first three weeks of this months Intervention Board figures, adjusted to 100% using the annual rolling butterfat average of 4.06%.

He believes that the final monthly figure for March will be 48.7 million litres over quota.

Meanwhile, with the prospect of the UK meeting production, farmers moved to cover themselves this week.

But, with a shortage in supply, prices firmed.

Clean quota of 4% butterfat has risen to 34.5ppl, with 4% used at 33ppl.

But the market is very quiet compared to previous years, said Roger Lightfoot of quota agents Hobbs Parker.

The majority of producers have decided – quite possibly rightly – that as a nation we are not going to meet quota, said Mr Lightfoot.

“There wont be the scramble that weve seen in other years. People do not feel they need to cover themselves. I hope theyre right.”

And with the focus on purchasing, demand for leased quota eased.

Despite the lack of interest, supply and prices have remained stable, said a spokesman for ADAS Quota Direct.

“The lack of confidence in the future milk price has resulted in many lessees holding off until the new quota year,” he added.

Forward leasing of 4% butterfat remains unchanged this week at 6.8ppl, with 3.55% at 6ppl.

  • Quota trends – to be updated later today

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