Overview of the UK Dairy Industry

The United Kingdom's dairy industry is a significant contributor to the global market, with an annual production of approximately 15 billion liters of milk. This output is supported by a substantial dairy cattle population of 1.8 million, underscoring the UK's important role in the international dairy supply chain.

Dairy Processing and Production

The UK boasts advanced dairy processing infrastructure, producing around 450,000 tonnes of cheese, 150,000 tonnes of milk powder, and 300,000 tonnes of whey annually. These capabilities enhance the UK's competitive position in global markets and support its active participation in international exports.

Key Dairy Enterprises

Leading companies in the UK's dairy industry include Arla Foods, known for its innovative approaches, and Müller, which focuses on enhancing processing capacities for smaller farms. Long Clawson Dairy is renowned for its Stilton cheese, while Millbrook Dairy is noted for its charitable contributions.

Export and Import Dynamics

The UK is heavily involved in international dairy trade, with exports valued at approximately £1.6 billion annually. Imports slightly exceed exports at £2.2 billion, driven by strong domestic consumption. The European Union is the primary market for UK dairy exports, with £1.1 billion recorded in the first half of 2025, marking a 20% increase from the previous year.

Recent Events and Developments

Recent developments include Arla's new product launches and Müller's initiatives to support small farms. The Dairy Roadmap coalition emphasizes climate and sustainability goals. Northern Ireland focuses on innovation initiatives, while Scotland's Rural University and College conduct sustainability research. Arla Foods plans a robotic expansion at its Oswestry plant to enhance pallet-moving capabilities.

Trends and Challenges

The UK dairy industry faces challenges such as livestock import restrictions and changing market demands. Despite a decline in the number of dairy farms, increased milk production per farm has led to a 10% year-on-year rise in milk output. Ice cream consumption remains strong at about 320 million kilograms annually. Unique challenges include milk collection issues and a shift towards health-conscious trends.

Additional Insights

More than 50 UK dairy farms have joined the new Dairy Carbon Network to reduce emissions and increase productivity. Arla launched its Cultura product line focusing on gut health in the UK on September 1st. The UK's dairy sector leads globally with an 84% uptake of sexed semen, particularly Holsteins at 89%. The GB Calf Strategy 2025-2030 was unveiled at UK Dairy Day, marking a significant milestone in dairy farming.

Regional Insights

Dairy farmers in the South West of England have reported financial recovery over the past year due to higher milk prices and lower feed costs. UK exports of red meat and dairy reached £2 billion in the first half of 2025. Northern Ireland plays a crucial role in addressing challenges like changing weather conditions and global trade uncertainties. Scotland's Rural College developed the 'farm-twin', the world's first 'digital twin' for dairy farming. Freshways is nearing completion of a state-of-the-art milk processing facility in West Bromwich as part of the Mayor's Growth Plan for the West Midlands.

Sustainability Initiatives

UK dairy farmers are invited to help shape future sustainability targets. The Dairy Roadmap initiative is calling for contributions from UK dairy farmers to set future environmental targets, with in-person events already underway in England and Wales, and an event scheduled in Scotland. The UK Plastic Pact highlights the dairy industry's leadership in sustainable packaging. The initiative aims to make all plastic packaging recyclable, reusable, or compostable by 2025, with a target of achieving 30% average recycled content and recovering 70% of plastic from the market.

Regulatory Developments

Recent reductions in milk prices by up to 18% have prompted UK MPs to call for stronger regulation of the dairy industry, highlighting concerns over the fragmented oversight and impact on farmers' livelihoods. A dairy farm in Tyrone has invested £750,000 to transform its operations. The investment, supported by Ulster Bank, has increased milk production by 500,000 litres annually.

UK-based West Horsley Dairy Ltd.

West Horsley Dairy Ltd is a wholesale supplier based in Surrey, UK, serving industries such as food catering, schools, and restaurants across the South East and South West of the UK.

Modified: 2025/11/04