UK butter production has surged on the back of EU market intervention, new figures show.

DairyCo production figures for March show 11,284 tonnes were processed, a 25% year-on-year increase. The rise is even more notable in view of the fact that production for the 12 months to March was down 3%.

The EU intervened in March to buy up excess milk as butter and stabilise falling prices.

Some 1.1% less milk went into liquid milk in March compared with March 2008, meaning more milk was available for other products, said DairyCo.