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Milk production still growing in week ending 9 May

Monday, 18 May 2020

By Kat Jack

GB daily milk deliveries for the week ending 9 May averaged 37.01 million litres per day, up 0.4% on the previous week. Production is now running 1.4% behind the forecast and 1.8% behind last year. The gap between this year and last year is decreasing, but this is because 2019 figures were already in their post-peak decline at this point. While 2019 peaked early, at the end of April, current data suggests that 2020 production has not yet peaked.

Last week, we reported on how actions to curb milk production had cut 23 million litres off milk collections for April. We have also previously reported on the potential for milk to exceed processing capacity. If we combine the two, we can see that, if no efforts to curb milk production had been made, there would have been a risk of excess milk both in mid-April and mid-May. Instead, GB production has remained within processing capacity from the second week of April onwards.

 

The efforts by some farmers to curb milk production has helped prevent a widespread re-emergence of the milk dumping seen at the start of April. However, the actions taken could have significant financial implications for those farmers, and the effect this has on them and overall milk volumes going forwards is yet to be seen. 

 


Katherine Jack

Analyst - Dairy

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