Quota stable as year comes to an end

By FWi staff

MILK quota sales remain relatively stable with the volume of clean and leased quota available falling slightly.

Clean quota continues to trade at a 2p premium to used at 32.8ppl for 4% butterfat with 3.8% at 31ppl.

Little has changed in the forward leasing market with quota of 4% butterfat at 6.9ppl and 3.77% at 6.4ppl.

The prospect of a super-levy now looks unlikely, although the actual position will only be determined once temporary conversions between direct and wholesale quota are calculated, noted Howard Smith of Howard Smith Agents.

He doubted the UK would reach profile in the remaining two weeks of trading, though he admitted the outcome remained uncertain.

The deficit is closing, with production just 25 million litres under profile at the end of last week. This is less than one days production, said Peter Weston-Davies, of Charles Holt quota agents.

He agreed that temporary conversions could affect the final outcome: “Its a closer-run thing than we think.”

Jim Leamon of Hamiltons quota agents said some producers are not buying in quota despite being well over their limit.

“Undoubtedly, this is the year to risk super levy if you are ever going to,” he said.

“But still many see the purchase of clean quota more than used quota as a viable risk-free option.”