Used quota price eases as supplies increase

Tuesday, 24 February, 1998

By FWi staff

AN increased supply of used milk quota has shaved more than a penny off prices, according to agents.

More used quota is now coming on to the market, say agents Bruton Knowles. Prices have eased by almost 2p this week to 38ppl.

A substantial amount of clean quota is also being offered for sale, but demand has remained steady, according to Ian Potter Associates. Clean quota at 4% butterfat continues to sell for about 56ppl.

Agents report increased producer interest in forward leasing. More quota is available on the forward market as non-producers realise that milk prices are likely to fall again this year. Forward quota is available at about 8ppl.