Image source:

 

United Kingdom's Dairy Industry Overview

The United Kingdom (UK) plays a vital role in the global dairy industry, leveraging advanced agricultural practices and a commitment to sustainability. The dairy sector is a cornerstone of UK agribusiness, providing substantial economic contributions and supporting rural livelihoods.

Milk Production and Processing

The UK produces approximately 15 billion liters of milk annually, supported by a robust herd of about 1.8 million dairy cows. The milk processing sector is well-developed, with cheese production reaching around 450,000 tonnes per year. Additionally, the UK produces about 150,000 tonnes of milk powder and 300,000 tonnes of whey each year.

Key Dairy Enterprises

• Arla Foods: A cooperative known for high-quality dairy products, including milk and specialty cheeses.
• Müller: Renowned for significant processing investments, bolstering the milk processing industry.
• Long Clawson Dairy: Celebrated for Stilton cheese, an iconic English specialty.
• Millbrook Dairy: Recognized for community-focused initiatives and diverse product offerings.

Prominent Dairy Farms

• Sandford Farm: Known for high-quality milk production.
• Holstein UK Herd: One of the largest herds, crucial to the national milk supply.
• Devonshire Dairy: A major national milk supplier.
• Lancashire Farm Dairies: Known for yogurt and milk products.

Export and Import Dynamics

The UK's dairy exports amount to approximately £1.6 billion annually, while imports total around £2.2 billion, reflecting the complex global dairy market dynamic.

Notable Recent Events in the Dairy Industry

• October 2023: Arla launches Starbucks protein drinks in the UK.
• August 2023: Müller warns smaller farms about exclusion risks without increased production.
• July 2023: Long Clawson Dairy sees a surge in Stilton cheese sales.
• June 2023: Millbrook Dairy joins the Tuk-Tuk Charity Challenge.
• August 2023: UK processors align milk prices with global trends; Arla Foods launches Lurpak® Plant-Based in the UK and Denmark.
• June 2023: Sainsbury's invests in AI for animal welfare enhancements.
• Ongoing: Bovaer trials focus on emission reduction under digital oversight.
• Current Trends and Issues: As of October 2024, the UK hosts about 7,200 dairy producers, showing slight consolidation with an increase in milk deliveries. Industry consolidation is evident with Volac International's divestment to Denkavit Group. The younger consumer base is driving interest in artisan cheeses, and Welsh farms aim for sustainability despite cost pressures. Challenges include livestock import bans from Germany due to Foot and Mouth Disease. Collaborations between Arla Foods and supermarkets target emission cuts while maintaining product quality. Genomic testing gains popularity for genetic assessment, and producers explore halal certification for Middle Eastern markets.
• Significant market trends are observed in dairy heifer prices and sheepdog auctions. DAERA Minister Andrew Muir announced the Sustainable Agriculture Programme in Northern Ireland. Consequently, UK MPs examine innovations in the largest fresh milk plant, prompting Northern Ireland suppliers to anticipate a price of 40.8p/L, with supplementary seasonal payments stabilizing incomes. However, Arla Foods UK's closure of the Settle facility in North Yorkshire puts over 100 jobs at risk, highlighting industry challenges. For March 2025, the UK's dairy sector announces stable milk prices, reassuring British farmers. Danone expands its dairy lineup in the UK with the introduction of Skyr.

Modified: 2025/03/10