Prospects for recovery in cow numbers and milk deliveries severely hit by FMD Provisional Intervention Board figures for UK milk deliveries to dairies for the year to March 31 show the UK fell short of its EU allocated milk quota for the first time since 1989/90. The shortfall amounted to more than 500 million litres, or around 3.6% The low level of milk deliveries is not attributable to the foot and mouth crisis, which only started in February, as milk output has been below year-earlier levels in every month since April last year. Experts believe that the main factor has been the low level of farmgate milk prices which have forced many dairy farmers out of business and cut the national number of dairy cows. In fact the December cattle census showed that the national dairy herd was 4.1% lower than a year earlier. Prospects for a recovery of cow numbers and milk deliveries have obviously been severely damaged by the foot and mouth crisis. All the indications at present are that UK milk output will be even lower in the current milk quota year, which started on April 1, than it was in the year just ended. A shortfall of output against the national quota for two years in succession would be unprecedented in the 17 years since milk quotas were introduced in 1984. Meanwhile dairy farmers' co-op Zenith Milk has announced an average increase for its members of approximately 2.2ppl. The rise will take Zenith's Every Other Day Collected price close to 20ppl at 19.85ppl. - The Milk Group and all-Welsh organic milk cooperative Calon Wen have formed a joint venture to build a strong and expanding market for Welsh branded dairy products and organic milk. The two farmer owned organisations will share new product development costs. {{M/E CANNED GOODS }}

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