UK &#8211, Dairy processors and supermarkets are playing down the possibility of a milk shortage despite the National Farmers’ Union (NFU) warning that production is running at lower than normal levels.

Milk production for the week before last amounted to 35 million litres compared with over 36 million litres for the same week last year, according to the NFU. In order to meet this year’s quota farmers will need to produce an extra 47 million litres of milk by March.

Philip Hudson, the NFU’s chief dairy advisor, told connectingdairy news: “Since September, production has been running at low levels compared to the previous year. Unless it picks up significantly it is highly unlikely that the yearly quota will be met.”

Hudson believes the low production levels reflect the large numbers of farmers leaving the industry due to the poor prices they receive for milk. If production does not pick up then consumers may be forced to pay more for their milk. “Supply and demand dictate. If consumers want a secure supply then they have to pay the price,” Hudson added.

The UK’s leading grocery multiple, Tesco, said there was no reason to panic. A spokesman for the retail chain told connectingdairy news: “From what we understand milk production is a couple of per cent lower than normal. It does not mean there is a milk shortage and certainly does not spell a crisis.” Tesco rival Sainsbury said it was not aware of any milk shortage.

Jim Begg, director general of the Dairy Industry Federation, an organisation which represents dairy processors, reiterated this view, saying: “Milk production is low and there is uncertainty as to whether the quota will be met. However, there will be no shortage of milk in the fresh milk product market.”