October 2, 2014


UK dairy firms' milk intake up 2.7% in August while retail sales dip



UK dairy companies including creameries and pasteurisers used up an estimated 609 million litres of milk in August, up 2.7% from 2013, despite lower milk quantities sold to consumers.


The total amount of milk sold to individual consumers decreased by 4.4% to 38.9 million litres in August compared with the same month last year, data showed.


The week ending September 20, though, registered an increase of 0.9% in milk deliveries over the previous week, according to DairyCo. Historically this "unusual" increase occurred similarly in some years including 2006-07 and 2009-10.


It remains to be seen whether the uptrend will continue through the end of September, as DairyCo noted that in the past, production decreased again in the final week.


Meanwhile, according to available data, prices of milk have fallen, but interestingly milk production in the UK has maintained its buoyant pace.


Industry observers think that dairy producers are boosting individual production to offset lower base prices. DairyCo advises that producers should be consulting with processors and complete plans efficiently manner in order to realize reasonable overall margins.