Wednesday, 17 November 2021
Milk deliveries for October reached 1,012m litres in GB, 1.5% below previous year volumes and 0.8% below forecast. Deliveries varied through the month, but were consistently lower than in October 2020.
Total GB deliveries so far in the 2021/22 season are not dissimilar to last year however. While production curtailed in spring 2020, autumn yields were strong and production reached 7,383m litres in the April-October period. In this season, total deliveries over the same period have reached 7,365m litres, equivalent toa drop of 18.8m litres (0.3%).
While deliveries were variable through October, they have risen in line with typical patterns, increasing by 3.7% over September volumes. Over the past 5 years, October production has been 3.6% higher on average than September.
The relatively low deliveries this autumn will be tightening the market as demand builds on the back of the continued recovery in the foodservice sector and the approaching holiday period. This is already playing out in rising wholesale market values and recent milk price increases. However, these price increases are unlikely to be enough to stimulate higher production while farmers continue to face escalating input costs.
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