Fewer Farmers Leaving UK Dairy Sector as Decline Slows
Source: DairyNews.today
The pace of dairy farmers leaving the sector in Britain appears to be slowing, according to new figures from the Agriculture and Horticulture Development Board (AHDB). The levy organisation estimates that the number of dairy producers fell by just 30 between April and October 2024, marking a significant slowdown compared to previous trends.
As of October, there were approximately 7,200 dairy producers operating across Britain, AHDB reported. This represents a far smaller decline compared to the 300 farmers—roughly 4% of the total—who exited the industry between October 2023 and the same period this year.
Winter Exits Slow Amid Improved Conditions
AHDB analysts suggest the bulk of recent departures occurred during the winter months, driven by sustained pressure on margins and high cull cow prices, which incentivized exits. However, the outlook has since improved.
“Better prices through the summer this year may have stemmed the flow of people exiting the industry for now,” said Annabel Twinberrow, an analyst at AHDB.
The slowdown in exits aligns with higher milk prices seen since April, which have provided some relief to producers grappling with ongoing economic challenges.
Fewer Farms, Higher Output
Despite the slowdown in farmer departures, the sector continues to see a trend toward consolidation, with fewer but larger farms taking on increased production. Average milk volume per farm in Great Britain has now risen to 1.7 million liters annually, reflecting the shift toward higher output per producer.
In line with these developments, milk production in Great Britain has been increasing and is expected to continue growing throughout the remainder of the current season, supported by the improved pricing environment.
Sector Still Faces Challenges
While the recent slowdown in exits offers a positive signal for the dairy industry, challenges remain. Margins remain tight for many farmers, and external factors, including global market volatility and input costs, continue to weigh on the sector’s long-term outlook.
As the industry adapts, stakeholders will likely focus on balancing consolidation with sustainability and resilience to ensure continued growth and stability in the face of future pressures.
Winter Exits Slow Amid Improved Conditions
AHDB analysts suggest the bulk of recent departures occurred during the winter months, driven by sustained pressure on margins and high cull cow prices, which incentivized exits. However, the outlook has since improved.
“Better prices through the summer this year may have stemmed the flow of people exiting the industry for now,” said Annabel Twinberrow, an analyst at AHDB.
The slowdown in exits aligns with higher milk prices seen since April, which have provided some relief to producers grappling with ongoing economic challenges.
Fewer Farms, Higher Output
Despite the slowdown in farmer departures, the sector continues to see a trend toward consolidation, with fewer but larger farms taking on increased production. Average milk volume per farm in Great Britain has now risen to 1.7 million liters annually, reflecting the shift toward higher output per producer.
In line with these developments, milk production in Great Britain has been increasing and is expected to continue growing throughout the remainder of the current season, supported by the improved pricing environment.
Sector Still Faces Challenges
While the recent slowdown in exits offers a positive signal for the dairy industry, challenges remain. Margins remain tight for many farmers, and external factors, including global market volatility and input costs, continue to weigh on the sector’s long-term outlook.
As the industry adapts, stakeholders will likely focus on balancing consolidation with sustainability and resilience to ensure continued growth and stability in the face of future pressures.
