Dairy Industry in the United Kingdom

The United Kingdom is a substantial player in the global dairy market, producing around 15 billion liters of milk annually. This production is supported by a robust population of 1.8 million dairy cattle, highlighting the UK's critical role in worldwide dairy supply.

Dairy Processing and Production

The UK boasts advanced dairy processing capabilities, producing approximately 450,000 tonnes of cheese, 150,000 tonnes of milk powder, and 300,000 tonnes of whey each year. This strong processing infrastructure supports the UK's competitiveness in the global market and its active export activities.

Key Dairy Enterprises

Leading companies such as Arla Foods, Müller, Long Clawson Dairy, and Millbrook Dairy are at the forefront of the UK dairy industry. Arla Foods is known for its innovation in dairy products, and Müller is enhancing its processing capacities to support smaller farms. Long Clawson Dairy is celebrated for its Stilton cheese, which saw significant sales growth in 2023, while Millbrook Dairy is recognized for its charitable initiatives.

Export and Import Dynamics

The UK is active in international dairy trade, with exports valued at approximately £1.6 billion annually. However, imports slightly exceed exports, totaling around £2.2 billion, reflecting a trade imbalance due to strong domestic consumption. The European Union remains the primary market for UK dairy exports. Notably, UK dairy exports reached a record £1.1 billion in the first half of 2025, marking a significant 20% increase compared to the previous year.

Recent Events and Developments

Recent developments include Arla's new product launches and Müller's initiatives to support small farms. Sustainability efforts are highlighted through innovation initiatives in Northern Ireland and research at Scotland's Rural University and College. The Dairy Roadmap coalition continues to focus on climate and sustainability goals.

Trends and Challenges

The industry faces challenges such as livestock import restrictions and evolving market demands. Despite a decline in the number of dairy farms, milk production per farm has increased, leading to a 10% year-on-year rise in milk output. The UK also shows significant consumption of ice cream, at approximately 320 million kilograms annually, supporting the local economy.

Additional Insights

Unique challenges in the UK dairy industry include milk collection issues and a focus on health-conscious trends. Arla's commitment to stable milk prices for British farmers ensures market stability, though a decline in organic production raises concerns. The UK's top Holstein genomic young sires are assessed with Peak AltaValuepack leading with a PLI of £877. Additionally, labour shortages threaten food security, and the India-UK Free Trade Agreement opens new markets for Indian agricultural products. First Milk, a UK-based co-operative, is wholly owned by British dairy farmers.

Over 50 UK dairy farms join the new Dairy Carbon Network to cut emissions, improve efficiency, and boost productivity. These farms are organized into four regional clusters: South and South-West England/Wales; Cumbria and South-West Scotland; North-West England; and Northern Ireland.

Arla has launched its Cultura product line in the UK, focusing on gut health with six offerings. This range features a unique blend of bacterial cultures, vitamin D, calcium, protein, and fiber, all lactose-free, set for a UK launch on September 1st.

The UK's dairy sector achieves 84% uptake of sexed semen, leading the global market. Holsteins achieved the highest level of sex-sorted semen use at 89%.

Modified: 2025/09/04


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