Global milk production levels have dropped amid continued weakened markets.

UK milk deliveries for the first two weeks of July averaged 37.2m litres per day, down 4.2m litres/day (10.2%) on the same period last year.

Similarly, the latest figures for Australian milk supply show it is down 2% for the full year but down 8.8% for the month of June.

Wet cold weather in Uruguay and South America and low prices are also reducing supply as autumn weather is making a real impact. On the back of reduced European and Australian supply, spot milk prices have increased, with the latest Dutch price (24 July) at 27c/l and the latest Italian spot price at 33c/l.

Closer to home, depending on what processor you talk to, our survey results showed June milk supplies are up between 2% to 6.5% on last year. However, processors would say that in more recent weeks even Irish supplies have been slower than last year.