Farm-gate milk prices may well remain stable over the coming months whilst the scale of the Northern Hemisphere’s spring milk flush is assessed, according to an AHDB Senior Dairy Analyst.

“The markets just don’t know which way to jump at the present time,” she said.

“Butter stocks are at almost record low levels. The exact opposite state of affairs is the case for skimmed milk powders, while cheese prospects look steady.

“All of this is predicated on production trends remaining within predictable parameters. But the recent floods in New Zealand may change this scenario significantly,” she added.

Meanwhile, milk production from the five main exporting regions – EU, USA, New Zealand, Argentina and Australia – rose again in February, continuing the month-on-month growth seen since October 2016. Combined production in February was just under 22 billion litres, equivalent to around 279 billion litres on an ‘annual equivalent’ basis.

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