Dairy analysts at ADHB in Britain have forecasted increased milk production levels for the second half of 2018 on the back of improved milk prices.
However, the same forecast is also pointing to lower milk volumes from April 2019 onwards, with total annual production to finish 0.6% down on the previous year.
Milk production in Britain during April and May 2018 was marginally lower (0.4%) than initial market forecasts set at the start of the year.
Production during June and July is expected to keep in line with forecasted volumes, before small increases in milk deliveries this autumn after milk buyers in Britain announced higher prices from July onwards.
Falling butter sales
The latest Kantar World Panel report shows a fall in butter sales during the past year as global price increased.
For the 12-month period ending on 22 April 2018, block butter sales were down 4% on the previous two years in Britain.
However, the average retail price increased by 41%, or £1.41/kg, during the same 12-month period.
Retail prices for liquid milk increased by 3p/l throughout 2017, an increase of 5% on the previous year. Sales of liquid milk increased by 1% in 2017, which amounts to approximately 54m litres.
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