Agriculture and Horticulture Development Board (AHDB)

The Agriculture and Horticulture Development Board (AHDB) is a cornerstone of the agricultural sector in the United Kingdom, significantly impacting the dairy industry. Headquartered at Stoneleigh Park, Kenilworth, Warwickshire, AHDB is a levy-funded organization that collects approximately £60 million annually from stakeholders across the agricultural supply chain. This funding is dedicated to supporting research, market development, and the transfer of knowledge to strengthen the agricultural sector.

Significant Events

In 2024, AHDB reported a notable increase in the sales of organic cow's milk, with a 4% rise in the 12 weeks leading up to May 18, followed by an additional 5% increase in the subsequent 12 weeks. This growth indicates a rising consumer demand for organic dairy products. In 2020, AHDB collaborated with the National Farmers' Union (NFU) to launch the GB Dairy Calf Strategy, aimed at improving dairy calf welfare across the UK. The first half of 2025 saw a 20% surge in UK dairy exports, driven by global interest, with AHDB playing a vital role in promoting British dairy products internationally through initiatives like the UK Dairy Export Programme, which included a dairy export mission to the Middle East.

Company Plans

AHDB is committed to supporting the dairy sector's sustainability and productivity. As part of the Dairy Roadmap steering group, AHDB focuses on maintaining competitiveness within the EU market by providing tools such as genomic evaluations and the Herd Genetic Report to help farmers optimize their operations. The organization is also involved in the UK Dairy Carbon Network project, which explores emission reduction opportunities.

The 'Let's Eat Balanced' campaign by AHDB has been remarkably successful, generating £28 in retail sales for every £1 of levy invested, thereby promoting the nutritional benefits of British dairy and sustainable farming practices. AHDB's plans include enhancing British dairy exports, particularly in North America, by highlighting the products' heritage and provenance. Their promotional efforts extend to partnerships with retailers like Lulu Hypermarket for British Dairy Promotion in Kuwait.

Additionally, AHDB is piloting a new Farm Data Exchange project with 18 farm businesses to improve data control and sharing within the beef and dairy sectors.

Further Developments

AHDB's senior livestock analyst, Becky Smith, reported an increase in cull numbers due to declining milk prices, adding economic pressure on dairy farmers. AHDB oversees the AHDB rankings, which in April 2026 named Peak Powerhouse as the leading Holstein sire, focusing on health and efficiency in dairy cattle breeding, while Denovo 22750 Lorenzo leads in enhancing daughter fertility and udder health. Despite financial challenges, the UK achieved a milestone in milk production for the 2025/26 season. However, the number of UK dairy farms fell to a record low of 7,010 from 8,310 in 2020, alongside a decrease in dairy cow numbers to 1,590,000 as of April 2026, a 2% drop from April 2025. AHDB forecasts a decline in British milk production to 12.91 billion liters for the 2026/27 dairy year.

AHDB noted a 3.4% decrease in milk deliveries in Ireland in April 2026 compared to the previous year, highlighting challenges faced by British dairy farmers due to falling farmgate prices since August 2025, attributed to a global milk oversupply. The organization is organizing a Bluetongue meeting for farmers, providing levy payers with access to industry specialists and practical information on the Bluetongue virus. AHDB manages a Bluetongue tracker and hotline for farmers. Data from AHDB indicated a 3.2% year-on-year decline in milk deliveries in Great Britain in July, with export activity helping to support domestic prices during a challenging period for international trade. AHDB’s international trade specialists emphasized the importance of retaining a broad range of destination markets.

AHDB reported that factors like heat stress, weak forage growth, and Bluetongue have reduced supplies. AHDB indicated that raw cow’s milk collected from British dairy farms between April and June totaled 4,164 million liters, 1.1% below the level recorded in the same quarter a year earlier. The organization expects supplies to decline further in the coming months. AHDB has issued revised market outlooks for Britain’s dairy, beef, lamb, and pork sectors, pointing to reduced production as livestock supplies tighten, while consumer demand and economic uncertainty continue to affect markets. This analysis is intended to help levy payers assess market conditions relevant to their businesses.