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Dairy production cuts loom as feed costs rise
2 June 2021 |
by FarmingUK Team | Dairy, News
The industry could be set for a reduction in milk volumes as dairy farmers respond to rising feed costs
The dairy industry could be set for a reduction in milk volumes as farmers respond to rising feed costs, according to AHDB.
The levy board s milk to feed price ratio is trending to the level at which milk output has historically contracted as farmers review feed volumes to manage costs.
Farmers supplying into non-aligned fresh milk or manufacturing supply chains have, however, been facing a pressure on margins for over a year.
Irish cross-border trade not reflected in UK trade data
Tuesday, 18 May 2021
By Patty Clayton
UK dairy exports to the EU have recorded large drops since 1 January, as exporters face new trading conditions. This was mostly expected due to the impact of increased costs and customs related administration. However, it was thought that trade between Northern Ireland (NI) and the Republic of Ireland (ROI) would not be affected due to the NI protocol, which was put in place to keep this trade ‘free and frictionless’.
Northern Ireland’s most traded product with ROI in terms of volumes is raw milk[1], which is typically processed in the south due to a lack of domestic capacity. However according to HMRC trade data, this cross-border trade has all but ceased, with export volumes of raw milk at less than 1% of normal levels so far in 2021. This raised the question of how the industry in NI was dealing with this milk, given its lack of processing capacity.
May 13, 2021 12:50 pm
The Agricultural and Horticultural Development Board (AHDB) is confirming that global dairy markets will remain strong in the short-term, which will support farmgate prices.
However, there are some risks to markets later in the year which could put some downward pressure on prices.
Lower Chinese import demand, increased availability of US products on global markets, or a delay in the return of food service demand, could all limit further positive price movements.
Dairy markets forecast
AHDB dairy analyst Patty Clayton explained:
“At a global level, forecasts suggest limited growth in milk production across the key surplus regions. In total,