The table above indicates the recent falls in weekly production quite clearly.  It also shows just how much less milk we are now producing compared with the three year average.  If this has also occurred across the EU, one can see why both the spot price of milk and dairy commodity prices are strong.  This only points to more reasonably good news for UK milk prices in the next few months.

EU milk production has dropped by around 2.0% in the first few months of this year, compared with 2016.  As production is weaker in Australia and NZ too, I can only see trends continuing to look good for UK dairy commodity and UK milk prices.  Hopefully this will all be reflected in your milk price paid by your buyer soon.

However – a word of warning.  Most milk producers are producing a commodity – milk.  You cannot control its price.  The price of all commodities rise and fall depend on production and demand.  Of course currency values and market sentiment play a large role too, but if production rises (because you all are feeling a little more confident), then price will fall again.  You must remain ready for this eventuality.

Contact Charles at charlesholt@fcgagric.com to discuss milk production and pricing aspects further.