Monthly milk production has hit a three-year high, prompting fresh hopes that the tide could be beginning to turn for the troubled British dairy industry.
Wholesale deliveries in May totalled 1,238 million litres, their highest level since May 2007 and up 2.9% compared with May 2009, equivalent to an increase of 35 million litres [Defra] year-on-year.
The upturn was a sign of renewed optimism among producers, claimed Arthur Reeves, external affairs director at Dairy Crest. "These figures confirm that more producers are looking to stay in the industry and will expand their businesses," he said.
It was also evidence that investment in the industry was beginning to pay off, said Huw Bowles, chief operating office at Omsco, the Organic Milk Suppliers' Co-operative. "This is a result of the good prices we saw back in 2007 and 2008, which allowed farmers to invest in buildings, cows and new land."
Although the figures should be treated with a degree of caution, there were now higher levels of investment and confidence in the industry than there had been in the past, agreed another industry source. "The industry is benefiting from a period of stability and from the impact of aligned contracts with major supermarket customers like Sainsbury's and Tesco," said the source.
The news is a welcome boost for the industry following disappointing figures in April when production fell 1% compared with May last year, as a result of the bad weather.
However, some farming industry figures claimed farmers still needed more money to encourage them to stay in the industry. "I wish these figures were a turning point but I very much doubt it," said David Cotton, chairman of the Royal Association of British Dairy Farmers.
"Recent price rises from some companies have been welcome, but unless there is a significant price rise in the autumn, when many contracts are being renegotiated, there will still not be much confidence among farmers."
Wholesale deliveries in May totalled 1,238 million litres, their highest level since May 2007 and up 2.9% compared with May 2009, equivalent to an increase of 35 million litres [Defra] year-on-year.
The upturn was a sign of renewed optimism among producers, claimed Arthur Reeves, external affairs director at Dairy Crest. "These figures confirm that more producers are looking to stay in the industry and will expand their businesses," he said.
It was also evidence that investment in the industry was beginning to pay off, said Huw Bowles, chief operating office at Omsco, the Organic Milk Suppliers' Co-operative. "This is a result of the good prices we saw back in 2007 and 2008, which allowed farmers to invest in buildings, cows and new land."
Although the figures should be treated with a degree of caution, there were now higher levels of investment and confidence in the industry than there had been in the past, agreed another industry source. "The industry is benefiting from a period of stability and from the impact of aligned contracts with major supermarket customers like Sainsbury's and Tesco," said the source.
The news is a welcome boost for the industry following disappointing figures in April when production fell 1% compared with May last year, as a result of the bad weather.
However, some farming industry figures claimed farmers still needed more money to encourage them to stay in the industry. "I wish these figures were a turning point but I very much doubt it," said David Cotton, chairman of the Royal Association of British Dairy Farmers.
"Recent price rises from some companies have been welcome, but unless there is a significant price rise in the autumn, when many contracts are being renegotiated, there will still not be much confidence among farmers."
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