UK milk production is continuing to fall and now stands at its lowest level since the 1971 to 1972 milk year, according to DairyCo.

Milk deliveries in May stood at 1.2 billion litres, some 2.3% below May 2008. Cumulative milk deliveries for the first two months of the 2009/10 milk year were 2.3 billion litres, 1% down on the period last year.

Five consecutive years of falling milk production have been caused by lack of farmer confidence and investment, weak returns, reduced herd replacements, animal illness and poor fertility.