British spring peak milk set to hit 3 year low

This spring’s peak in GB milk production looks set to be the lowest since the 2013/14 milk year, according to latest data from the AHDB.

It says average daily delivery volumes have slowed since January and are now sitting around 4% below last year’s level (latest data to 30 April).

Low milk prices, wet pasture conditions and below average grass growth have all helped rein back production, it says.

From its current level, if GB production followed the same seasonal rise as the three-year average, the peak would only hit around 36m litres per day. This would be significantly less milk than some were fearing.

spring peak uk

The lower volumes could be a bit of good news, the AHDB says.

It highlights that if the reduction in British milk supply were to be sustained, it could put some upward pressure on spot milk prices later in the year.

However, it also says it is unlikely to have any major impact on British farmgate prices until the flood of milk coming from the rest of the EU slows down.

Last week two UK milk processors have announced milk price cuts for June citing strong supplies and weak dairy markets.

Müller has announced a reduction of 0.49 ppl to its standard milk price from 1 June 2016 reflecting the continuing impact of depressed markets resulting from strong supply and high stock levels.

The average standard liquid milk price for Müller Milk & Ingredients is 19.11 ppl with an additional supplementary payment to be confirmed (currently 2.05ppl).

Meanwhile, Dairy Crest has announced its Davidstow milk price will reduce by 1p/L from June 1, 2016.

This means the Davidstow core milk price will be 21.72p/L from June 1, 2016.