The milk taps are heading for full bore at speed with spot market at 22ppl and falling
Posted on: 30/03/21
We are nowhere near peak production but suddenly, despite the relatively cold and blustery weather a flush has come early and taken most by surprise.
Several liquid processors are understood to be literally drowning in milk and any processors without any balancing facility are both nervous and treading water.
Yes, the underlying EU and global markets are relatively good, but for some the anticipated surge in ex farm volumes coupled with farmer expectation, mainly driven by strong cheese processor and Arla farmgate prices could be the tipping point particularly for those in the fragile middle ground and some brokers with limited processing capacity. The odds are firmly in favour of one or two casualties.