Low Milk Production Could Support Higher Prices

UK - Latest figures from the UK's Rural Payment Agency give September deliveries at 994m litres, 48m litres less than the previous year. On a daily basis, this works out an average of 33.1m litres/day.
calendar icon 17 October 2012
clock icon 1 minute read

The seasonal decline in milk production has been significant this year. Between May and September, average daily production fell by 18 per cent compared with an average for the period of 14.6 per cent.

Data from the MET office show that this summer (June/July/August) was the second wettest on record. This was compounded by lower than average temperatures as well.

If the trend above continues, raw milk could be in short supply, say analysts at DairyCo.

There have been reports of spot milk trading at more than 35ppl although this will probably be for small volumes. If processors want to encourage production, they may have to increase prices further as we go into the winter. However, any price increase made will have to cover the cost of increased feed (which isn’t showing any signs of falling) so producers can chase marginal litres where this is feasible. If milk supply doesn’t pick up in the short term and consumer demand remains stable, this could lead to the need for higher levels of dairy imports or lower exports.

TheCattleSite News Desk

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.