Decline in UK Dairy Farms Raises Concerns Over Milk Supply
The Agriculture and Horticulture Development Board (AHDB) has reported that the number of dairy farms in the UK has reached a record low, with only 7,010 producers remaining last year. This marks a steep decline from the 8,720 farms in operation in 2019 and an 85% decrease from the 46,000 producers in 1980.
UK farms currently produce 12 billion litres of milk annually, meeting the needs of approximately nine out of ten British adults. Despite this, the concentration of production on fewer farms raises concerns about potential supply risks.
Since 2021, individual farm production has increased by 15%, according to AHDB, indicating a concentration of production. Paul Tomkins, chairman of the NFU dairy board, emphasized the unsustainability of this trend, warning of potential supply chain issues.
The situation is exacerbated by what some describe as overregulation and low supermarket milk prices, which are pushing farmers out of the industry. Jamie Blackett, a dairy farmer, criticized the lack of government support, suggesting that the UK should be exporting a surplus of dairy products.
The National Farmers’ Union (NFU) has also pointed out that Labour's family farm tax is discouraging investment in the dairy sector. Tom Bradshaw, another NFU official, noted that many farmers have halted investment plans due to this tax.
Meanwhile, the market for plant-based milk alternatives, such as those produced by Oatly, has experienced a slowdown. Experts have highlighted that these alternatives are not nutritionally equivalent to cow's milk. A spokesperson for the Department for Environment, Food and Rural Affairs affirmed the resilience of the UK's dairy industry, describing it as the largest farming sector in the country.
