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Strong yields continue into February
Thursday, 16 March 2023
GB milk production is estimated at 952 million litres for February, with daily deliveries averaging 34.00 million litres per day. This is a volume increase of 3.0% from last year, continuing the year on year growth recorded since September. Compared to our December forecast, deliveries were 1.3% higher. While we have seen strong year-on-year growth in the past few months, deliveries have been trending around the 5-year average.
Growth in milk production has been driven by higher farmgate prices supporting a favourable milk to feed price ratio over the autumn and winter. However milk price cuts have been announced going into spring as processors react to the declining returns from markets. While input price inflation has slowed, input costs remain high. Developments in margins will be a key watch point to see how production could develop in the new season. We will be publishing an updated milk production forecast later in March following the latest meeting of the milk forecasting forum (7 March).
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