The continuing low levels of milk production are continuing to push up mild and medim Cheddar prices. Increases of £50 and £100 a tonne in wholesale rates have been recorded by the Provision Trade Federation. Cumulative wholesale milk figures for the quota year to September 2000 show a 215 million litre year on year gap against 1999 ­ this is equivalent to nearly six days' worth of averaged-out production. Nor are the next set of MAFF milk utilisation figures likely to tell a brighter story. With the exception of whole milk powder, the entire British dairy industry has had less product to sell throughout the calendar year to September ­ in averaged out figures, this comes to -9% in butter, -8% in cheese, -19% in SMP. Even liquid milk, half the UK dairy industry's production, is nearly 2% down year on year in volume on the cumulative January to September figures. There was a hint of a recovery in milk output before Christmas. But it will take more than an 800,000 litre week on week lift in wholesale milk production, currently just under 230 million litres a week, to bring the supply back into balance with demand. January and February will see a lot of early calvings, but milk output from these cows will not reach their peak for a further 100 days, by which time the output gain is barely discernible against the high numbers of cows starting lactations in March and April. {{PROVISIONS }}

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