Production
The AHDB’s latest forecast is for GB milk production to reach 12.38bn litres for the 2023/24 season. This is fairly flat compared to 2022/23; just 0.01% less than year-earlier levels. However, this latest estimate is 71m litres less than its forecast made in March. Production for the first three months of the milk year has been 0.5% above last year but, for the remainder of the year, the Levy Board is expecting production to be slightly above last year’s levels until August and then declining gradually until the end of the season. The high levels of production seen since last autumn are now slowing, not just because of the seasonal decline but also driven by the fall in milk price. It has been a ‘difficult’ weather year so far; grass is now growing well, but earlier, turnout was late, then there was a dry spell and now very wet. Time will tell if silage quality and quantity is good for the winter months. The next update to AHDB’s forecast will be in September.
Prices
Commodity markets are struggling as global milk volumes remain high. The Global Dairy Trade (GDT) average index fell by -1% at the latest event held on 18th July, this follows a -3.3% decline at the auction earlier in the month. The index now stands at $3,289 per tonne compare with $4,166 per tonne in July 2022.
Closer to home, farmgate announcements have been mixed. These include;
- Saputo Dairy UK have announced a 0.5ppl increase for their Davidstow farmers for August. Having fallen by 13ppl since March, this takes their manufacturing standard litre to 35.3ppl
- Barbers have announced a 0.75ppl increase for those farmers who are compliant with their Nature Positive scheme. This includes animal health and welfare, environmental stewardship, antimicrobal usage, biodiversity and renewables
- Both Muller UK and South Caernarfon Creameries (SCC) have announced a 1ppl cut to their August milk prices. The former is for its direct suppliers and takes the price paid down to 37ppl. SCC members will receive 35.5ppl for its standard manufacturing litre.