Milk Production and Butterfat

As we expected, UK wholesale milk production in July was ahead of that delivered for the same month last year.  Better weather conditions this year compared to last has seen production for July reach 1,141.5 million litres (non-butterfat adjusted).  This is 25.5m litres more than in 2012, when the weather started to affect deliveries.  This month’s production is also 14.68m litres more than the five year average.  Cumulative deliveries now stand at 4,664.7m litres, just 18.58m litres less than the five year average.

Butterfat levels are at a record low for July at 3.81% compared to 3.94% in the same month last year.  Such low levels will be having an impact on the price some farmers will be receiving for their milk, especially those with butterfat and protein constituent payments (usually manufacturing contracts).

Meanwhile the RPA has (as expected) confirmed that there will be no super levy to pay in the UK for the 2012/13 milk year.  The UK’s wholesale milk deliveries (butterfat adjusted) totalled 13.048 billion litres, almost 2 billion litres under quota.  This is a record 13.8% shortfall, although it must be remembered that the quantity of UK quota has been rising over the last decade to engineer a ‘soft landing’ when quotas are removed in March 2015.  Direct sales were 27.6 million litres under quota at 115m litres.