Milk deliveries on track despite on-farm disposals

Tuesday, 21 April 2020

By Patty Clayton

GB daily milk deliveries to processors were 36.09m litres on average in the 7 days ending 11 April, up 1.4% on the previous weekly average and in line with forecasted volumes. 

Delivery volumes continue to rise as we approach the peak, gradually approaching last year’s levels. For the most recent week (4-11 April), average deliveries were 2.3% below the same week last year. This compares to a gap of 3.0% on average through March, bringing production closer to levels seen last year.

These figures take into account the non-collection of milk by some processors during the week, for which farmers will not be paid. This is estimated to be in the region of 800-900k litres, representing about 0.4% of total milk delivered in the week ending 11 April.

The milk was disposed of over the 5th and 6th of April, and there have been no reports of uncollected or discarded milk since then.

There were also reports of some milk collected off farms but not fully processed by the milk buyer during the week. While the fat component of the milk was utilised, some of the skim will have ended up in anaerobic digesters helping to generate energy.

Over the last few weeks, some processors have implemented schemes to address the imbalance between supply and lower consumer demand resulting from the temporary closure of the foodservice markets. These have included voluntary production reduction, A&B pricing, direct price cuts or a combination of these measures.

Patty Clayton

Lead Analyst - Dairy

Sign up for regular updates

You can subscribe to receive Dairy market news straight to your inbox. Simply fill in your contact details on our online form and select the information you wish to receive.

Visit the Keep in touch page