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.
17 October 2012
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
