Race on to beat milk quota deadline
By Simon Wragg
MILK quota leasing deals could come to an abrupt halt next week as brokers start to close offices, many of which will not re-open until after the New Year.
Early closure has been prompted by concern over lost post, clearance of payments, and the time needed to deliver forms to the Intervention Board.
For those farmers sending forms and cheques by post, the deadline for many brokers passed on Friday (17 December).
But producers able to fax forms and transfer funds electronically (adding £20 to costs) will still find some offices open up to the 31 December leasing deadline.
Agents closing on or before 24 December include ADAS, Bruton Knowles and Paton Webb.
Others, such as Derbyshire-based Ian Potter and Lincoln-based Charles Holt, will trade by electronic transfer until 30 December.
The Intervention Board has warned that forms must be mailed on or before that date to be accepted.
Tony Carver, of Carver Knowles, said: “Some offices will be open between Christmas and New Year, but anyone leaving it that late is taking a hell of a risk.”
The market remains frantic after provisional Intervention Board figures showed butterfat adjusted deliveries in November was 4.3 million litres over quota.
Leasing values rose to 9.2ppl for 4% butterfat and 8ppl for 3.60%.
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Cumulative production for the milk year is now 140m litres over profile, equivalent to 3.5 days supply.
Leased quota prices of 9ppl for 4% supplies are common, though deals have been found “with difficulty” at 8.2ppl, according to Charles Holt.
The volume of quota being leased or bought in a single transfer has risen to an equivalent of 66,000 litres, up from 58,300 litres last year.
For permanent transfers the number of transactions has fallen 14% while volume has risen by 25% over the same period to 83,000 litres/deal.
For those priced out the market, super-levy penalties may still be avoided by reducing production with changes to rations and heavier cull policies.