Milk production levels in the United Kingdom continue to slow down compared with the three-year average.
The recent cold weather is likely to have had a significant influence on production as many farmers would normally start putting cows out to grass at this time of the year.
"At the current weekly rate of increased production it appears unlikely there will be a significant spring peak," said an MDC Datum spokesman.
Production in the week ended March 11, 2006, was 250.1 million litres. Scaled to 100 per cent, the figure was 263.3 million litres.
The total number of milk producers in England and Wales, as registered by the Dairy Hygiene Inspectorate (DHI), stands at 14,002 for February 2006.
In total, 1,057 farmers left the industry in England and Wales between February 2005 and February 2006.
In Wales, 172 dairy producers ceased production in the 12 months to February 2006, compared with 885 producers ceasing production in Englan! d over the same period.
Meanwhile, the Government and competition authorities have been told that they must demonstrate great understanding of the dairy industry, the marketplace and the need for investment and innovation if the sector is to meet the challenges it faces successfully.
Jim Begg, director general of Dairy UK, the cross-industry organisation representing the United Kingdom dairy sector, said progress being made by dairy businesses should not be impeded by unnecessary bureaucracy and needless restrictions on industry consolidation.
Speaking at the Guild of Agricultural Journalists' annual lunch in London, Mr Begg said: "Of all food sectors, dairy is where the need for a united and collaborative approach is most needed. Historically, that approach has been difficult to achieve but we are now making progress.
"There is a much closer understanding between farmers and processors. Proof of that lies in the fact co-ops now process 25 per cent of our milk and private dairies all have farmer partnerships. To a large extent, everyone is now into processing and transparency and understanding is much greater than before.
"Crucially, the industry's capacity is now moving towards demand and our new product development is impressive.
"The feeling within the industry is that it is doing what it can to address the challenges it faces. Milk price and margin transmission remain the dominant issues but we are operating in a competitive market and that is how it is.
"The drive for competitiveness is relentless but the Government needs to understand the removal of price regulation does not mean the imposition of bureaucratic regulation in other areas. Likewise, in terms of competition law we all know the rules but the industry needs to have flexibility to consolidate.
"Furthermore, the Government must also understand that environmental sustainability in the countryside comes from economic sustainability - not the other way round.
"As an industry, we are facing major challenges such as CAP Reform, WTO talks, massive changes in consumers' lifestyles and the myriad of issues associated with the ethics of food production. More than ever, the Government needs to be in tune with us in meeting these challenges," he said.
