WITH many milk producers still struggling to make ends meet due to the ongoing uncertainty over milk contracts in the industry, there’s been an air of optimism at recent dairy dispersals where females have sold to a strong turnout of buyers and well ahead of expectations. 
And with a number of processors deciding not to go ahead with recent cuts, some members of the industry are hopeful that the end of the crisis is in sight and that the tide is about to turn for the better. 
That’s certainly the thoughts of Norton and Brooksbank’s managing director, Tom Brooksbank, who has hosted a number of dispersals both on farm and at the firm’s main hub near Stroud, Gloucestershire. 
“Considering the current milk price and the fact that a lot of people sitting at the ringside are likely to be losing money, trade has been rather good at recent dispersals,” Mr Brooksbank told The Scottish Farmer. 
“People are happy to buy good cattle, but those that are older, not in calf or come with high cell counts aren’t selling well. 
“What’s almost surprising is that youngstock that won’t be producing for another year or so are demanding a premium. For example, we’ve seen cows in milk sell for 600gns and their six-month-old calves make the same money
“But some producers know that they will need stock on farm and ready to produce if and when the trade does pick up.”
As well as youngstock, the summer calving females due in late July, August and September are also commanding top prices from those producers looking to keep supply going to uphold their contract, particularly those who are on aligned contracts. 
Mr Brooksbank continued: “But you’ve got two groups of people at the minute – those that are down in the dumps and think that trade won’t pick up for another 12 to 18 months, and those that think it’ll pick up sooner rather than later. 
“We’ve seen this before where producers have been despondent but it has picked up quite sharply. 
“I, personally, remain optimistic for the industry and believe we’ve reached the bottom of the trough – we just don’t know yet how big that trough is but things are looking up, added Mr Brooksbank”
In another burst of positivity for the industry, reports from Ian Potter Associates highlight that when major processors start to talk about holding prices to give stability to supplying farmers, it’s a clear signal that the worst of the cuts have passed. 
In fact, the IPA report dated June 10 states that the market hit the bottom seven weeks ago and has been climbing ever since. 
While Dairy Crest has announced a 1p per litre drop for July, it is expected that there will be no further reductions to farm gate milk prices until the end of September, and Mr Potter is hopeful that Arla and Muller will not have to cut producer prices further and that the next move will be for a price increase. 
Those that were under notice from their current milk buyer to leave, are now recieving letters saying this notice has been revoked, and it is hoped that there will be a recruitment drive by the end of the year.