UK October milk production hits three year high
That was 2m litres above October last year, and 7m litres above the AHDB forecast. Milk production increased towards the end of October having been relatively stable through the first half of the month.
Since the start of November, production has remained stable and continues to run in line with last year. Expectation remains that volumes will come under pressure as we move through the winter period, but the timing and size of the downturn will depend on feed availability and costs.
Falling cheddar and butter prices have pulled AMPE and MCVE down again in November. The latest indicators are sitting at 27ppl and 31ppl respectively, their lowest levels since March. As a result, AHDB’s projected farmgate price model is predicting average farmgate milk prices will come under further pressure from February 2019. ■