Brief Market Outlook

The on farm position requires no explanation it’s set to be a very expensive autumn and winter for many UK dairy farmers with little chance of production forecasts being achieved given that most are well into first cut silage and second cut silage is either non-existent or second class in terms of milk production. 

Most processors realise that at current milk prices coupled with increasing costs production is set to fall.

Generally, EU and world wholesale markets are cooling off in terms of butter, cheese and powder.  The same is reflected in futures pricing.  GB production is now declining with AHDB dairy reporting that weekly milk deliveries are running at almost 1% below the equivalent week in 2017.