United Kingdom's Dairy Market Overview

The United Kingdom (UK) stands as a significant player in the global dairy industry, showcasing its agricultural prowess through advanced dairy production and processing measures. This sector is a pillar of the UK's agribusiness, reflecting the nation's commitment to both food quality and sustainability.

Milk Production and Processing

The UK's annual milk production is approximately 15 billion liters, supported by around 1.8 million dairy cows across numerous farms. This positions the UK strongly in dairy farming:

• Milk Production Volume: Approximately 15 billion liters/year.
• Cheese Production Volume: About 450,000 tonnes/year.
• Milk Powder Production Volume: Approximately 150,000 tonnes/year.
• Whey Production Volume: Approximately 300,000 tonnes/year.

Key Enterprises in the Dairy Market

• Arla Foods: A renowned cooperative known for a range of quality dairy products, including milk and specialty cheeses.
• Müller: Famous for strategic investments enhancing processing capabilities, establishing itself as a major milk processor.
• Long Clawson Dairy: Known for producing Stilton cheese, a classic English specialty.
• Millbrook Dairy: Recognized for community-driven initiatives and a varied product range.

List of Notable Dairy Farms

• Sandford Farm: Known for high-quality milk production.
• Holstein UK Herd: Houses one of the largest herds, significantly contributing to milk production.
• Devonshire Dairy: An essential player in the UK's milk supply chain.
• Lancashire Farm Dairies: Distinguished for its yogurt and milk offerings.

Export and Import Dynamics

The UK exports dairy products valued at approximately £1.6 billion annually, underscoring its importance in the global market. Conversely, imports are around £2.2 billion annually, highlighting the UK’s active trade exchanges in the dairy sector.

Recent Significant Events

• October 2023: Arla launches Starbucks protein drinks in the UK.
• August 2023: Müller advises smaller farms on potential exclusion without production increases.
• July 2023: Stilton cheese sales surge boosts Long Clawson Dairy.
• June 2023: Millbrook Dairy takes part in the Tuk-Tuk Charity Challenge, supporting Children in Need.
• August 2023: UK processors raise milk prices due to global market trends.
• August 2023: Arla Foods introduces Lurpak® Plant-Based in the UK and Denmark.
• June 2023: Sainsbury's invests in AI veterinary technology for better animal welfare on farms.
• Ongoing: Bovaer trials in the UK focus on reducing methane emissions amid digital scrutiny.

Current Trends and Issues

The UK dairy industry adapts dynamically to global trends and economic shifts, influenced by post-Brexit changes, sustainability endeavors, and regulatory modifications. Efforts focus on reducing methane emissions, aligning with priorities like food security and sustainable agriculture. As of October 2024, approximately 7,200 dairy producers are operating in the UK, indicating a slight decline. Kerry Dairy Ireland processes over 1.1 billion liters of milk annually. Volac International's divestiture to the Denkavit Group reflects industry consolidation.

The artisan cheese market thrives among younger demographics, while Tesco faces critique over its infant feeding campaign. The UK dairy market confronts major challenges in 2025 due to economic, ecological, and regulatory changes, despite a 0.3% increase in milk deliveries in 2024. Recent events also include a livestock import ban from Germany following a Foot and Mouth Disease outbreak. Over 40 environmental and vegan groups urge the government to stop AHDB's campaign promoting British meat and dairy. Noteworthy progress is seen in a Welsh dairy farm achieving a notable carbon reputation through sustained sustainability efforts. Welsh dairy farmers face a severe financial crisis, with incomes dropping 62% in real terms, impacted by rising costs. Exemptions from traditional regulatory requirements are noted under Anexo III.

Arla Foods partners with British supermarkets for a Bovaer trial, confirming no detection of its active ingredient in dairy products. The Dairy Industries Expo in the UK will feature Dr. Judith Bryans, a prominent leader in the global dairy sector, as the keynote speaker.

Modified: 2025/02/05

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