NFU Scotland is contacting all milk purchasers in Scotland, calling for them to immediately lift prices to producers on the back of a rapidly changing marketplace.
Milk production in GB is almost 11 per cent lower now than in the same period last year, leaving the majority of milk purchasers short of supplies and spot prices for milk surging to around 30p per litre (ppl).
UK milk producers could be set to benefit from their voluntary cut-back in milk production. Through the supply management aspect of the recently-announced EU €500m dairy package, producers will voluntarily be able to opt-in to the scheme for compensation to reduce their production, based on their own circumstances.
NFUS understands that for every litre they reduce their production by, compared to the same period last year, they will be paid around 12ppl, for each of the reduced litres. Details of the scheme are to be worked out in the coming weeks in readiness for its anticipated launch in September.
Meanwhile, with most Scottish milk producers still receiving an unsustainable milk price below 20ppl - and dairy farmers desperately needing to make plans for autumn and winter production - NFUS believes there is every justification for August and September milk prices to lift by several pence per litre, and continue rising into the New Year.
Market round-up
United Auctions Ltd sold 190 store heifers at Stirling on Wednesday to a top of 263p per kg and an average of 214.7p (-3.7p on the week), while 415 store, beef-bred bullocks peaked at 269.6p and levelled at 217.5p (-10p). Seventy-four store, B&W bullocks sold to 132.9p and averaged 128.5p (-18.1p), while 11 store bulls peaked at 223.6p and levelled at 198.7p (no comparison).
In the rough ring 119 beef cows sold to £1310 per head and 177.9p per kg to average 124.3p (-3.3p), while 30 dairy cows peaked at £865 and 130.2p to level at 84.4p (-9.1p).
C&D Auction Marts Ltd had 31 prime cattle forward in Dumfries on Wednesday when heifers sold to 214.5p and averaged 168.8p, while bullocks peaked at 200p and levelled at 167.1p.
There were 66 OTM cattle presented in the rough ring when beef cows sold to £1368 and 160p to average 124.3p, while dairy cows peaked at £953.55 and 125p to level at 94.8p.
The firm also sold 1412 prime lambs to a top of £92 per head and 200p per kg to average 181.5p (-8.3p).
The 374 cast sheep forward saw heavy ewes sell to £107.50 for Texels and average £67.32 (-£1.89), while light ewes peaked at £66.50 for Blackfaces and levelled at £47.11 (+39p).
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