Dairy Industry in the United Kingdom

The United Kingdom is a significant contributor to the global dairy market, with an annual milk production of approximately 15 billion liters. This high level of production is supported by a strong herd of 1.8 million dairy cattle, underscoring the UK's vital role in the international dairy supply chain.

Dairy Processing and Production

The UK boasts an advanced dairy processing infrastructure capable of producing around 450,000 tonnes of cheese, 150,000 tonnes of milk powder, and 300,000 tonnes of whey each year. These capabilities not only enhance the UK's competitiveness in global markets but also facilitate 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 noted for its innovation in dairy products, while Müller enhances processing capacities to support smaller farms. Long Clawson Dairy is celebrated for its Stilton cheese, and Millbrook Dairy is recognized for its charitable efforts.

Export and Import Dynamics

The UK actively engages in international dairy trade, with exports valued at approximately £1.6 billion annually. Despite this, 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 emphasized 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, labor 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 have joined 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%.

Home to major industry players like Unilever and Froneri, the UK dairy market is experiencing a shift in power towards farmers and processors, with retailers urged to pay more to secure milk supplies. The GB Calf Strategy 2025-2030, launched at UK Dairy Day, represents a significant milestone in dairy farming, developed collaboratively by AHDB, Innovation for Agriculture, the NFU, and RH&W.

In Northern Ireland, the August milk price is pegged at 38.3p/litre, with price cuts attributed to strong milk supply and inflation, alongside geopolitical tensions affecting trade and market confidence.

Pembrokeshire Dairy Farm Development Approved Amid Objections: Plans to develop a Pembrokeshire farm for dairy use by new owners have been approved despite it being one of the largest on the northern coastal land of the county. Sales to Welsh holdings are possible due to Bluetongue vaccination. The Dilandy Holstein Herd, known for its high-quality breeding, has been Bluetongue vaccinated, allowing sales to Welsh holdings.

Fears regarding the potential inundation of British shelves by American cheese and butter have been largely dismissed by a recent analysis. The study suggests that even with complete elimination of tariffs, the impact on domestic UK farmers would be negligible. Currently, the US exports a mere 65 tonnes of cheese to the UK annually, valued at approximately £360,000, predominantly in low-value categories.

Little Town Dairy, located in Lancashire, United Kingdom, has installed a new automated shrink wrapping line to enhance their production capabilities.

Scottish Borders Council has approved plans for developing a former dairy into a tourism and retail destination. The site is in an attractive location, within the Old Melrose House estate, a high-quality landscape, and close to the River Tweed.

British dairy industry leaders urge against compromising domestic farming for US trade deals. Concerns are mounting that an increase in US access to the UK market could destabilise the domestic dairy sector, already facing significant strain.

Support for emergency mass vaccination campaign against PPR. The UK provides support to the FAO's vaccination campaign targeting high-risk areas in Afghanistan.

The UK experiences unusually dry weather conditions affecting forage supply for organic dairy farmers. The lack of grass growth since early spring has particularly impacted the organic sector, leading to a rapid depletion of existing forage reserves.

Modified: 2025/09/21