UK Quota Will Not be Met

Earlier in the month we reported on the UK milk production figures for December.  At over 10% more than year earlier levels, December’s production was 1,150.7 million litres taking cumulative production at the end of December to 10,151.1 million litres.  But even at the current higher than average production rates, UK deliveries will not exceed national quota levels this milk year.  A story in the agricultural press from one Quota Agent suggested that this might be possible.  This has seen quota values lift over the last couple of weeks. 

Production for the last three months of the milk year would have to reach in the region of 5.1 billion litres; the last five year’s production average for January to March is 3.2 billion litres.  Modelling carried out by TheAndersons Centre forecasts production for 2013/2014 to be about 1.7 billion litres below quota and 1.65 billion litres below when adjusted for butterfat.  Thus, there is no need for producers to rush out and purchase quota.