Dairy Production & Prices – Mar ’16 March 24, 2016 12:00 am UK Production and Prices UK milk production is slowing down. Average daily milk deliveries in GB are now similar to 2015 levels. Production for 2015/16 looks set to be about 3% higher than last year at about 12,520m litres. As we approach the spring flush a normal profile would estimate production in May at around 37m litres per day, similar to last year. However cow numbers have increased (see December Survey of Agriculture article) and yields are general improving. According to AHDB dairy, this could see daily production hit 39m litres, which would stretch the processing capacity in GB. But the wet weather seen a few weeks ago and low milk prices are likely to have an impact on production. With GDT auction prices still under pressure and little sign of recovery in the dairy markets, prices continue to fall. Below are some of the more notable changes: First Milk has announced price reductions to its A pricing schedule. Its Haverfordwest, Aspatria/Cumbria, North of England, Arran and Campbeltown Pools were reduced by 0.6ppl from 1st March and suppliers to its Scottish balancing pools by 0.42ppl Muller Wiseman has announced a 1.35ppl reduction as from 1st April Meadow Foods will cut suppliers prices by 1ppl also from 1st April Company News Arla has announced that 50 of its direct suppliers have been given 12 months notice to find a new milk purchaser. It has also announced that it will be closing its Hatfield Peverel site in Essex by the end of July.
