South West Dairy Farmers Experience Financial Rebound
Sourse: dairynews.today
Dairy farmers in the South West of England report strong financial recovery, driven by higher milk prices and lower feed costs, despite ongoing challenges.

South West dairy farmers have experienced a significant financial rebound over the past 12 months. According to the latest Milk Cost of Production Report from Old Mill and the Farm Consultancy Group, stronger milk prices and easing feed costs have increased average comparable farm profits to £644 per cow in the year to Monday, March 31, up from £153 per cow the previous year. However, margins remain fragile.
Bradley Causey from Old Mill said: "Overall, the rise in milk income of around 4.9p per litre was not completely offset by costs, which have slowed the rate of increase."
The average herd size increased from 295 to 322 head, with yields improving to 7,435 litres per cow, up from 7,256 litres the previous year. Feed costs eased by £42 per cow, but other inputs, including labour costs, increased. Allaster Dallas at the Farm Consultancy Group said: "Those businesses that successfully controlled power, machinery and labour costs made the most of increasing milk prices in 2024/25."
Looking ahead, milk income in 2025/26 is forecast to increase to £3,465 per cow; however, costs are expected to rise further, resulting in a forecast profit of £2 per cow. Volatility, however, remains an ever-present challenge, with labour shortages and rising machinery costs.
Bradley Causey from Old Mill said: "Overall, the rise in milk income of around 4.9p per litre was not completely offset by costs, which have slowed the rate of increase."
The average herd size increased from 295 to 322 head, with yields improving to 7,435 litres per cow, up from 7,256 litres the previous year. Feed costs eased by £42 per cow, but other inputs, including labour costs, increased. Allaster Dallas at the Farm Consultancy Group said: "Those businesses that successfully controlled power, machinery and labour costs made the most of increasing milk prices in 2024/25."
Looking ahead, milk income in 2025/26 is forecast to increase to £3,465 per cow; however, costs are expected to rise further, resulting in a forecast profit of £2 per cow. Volatility, however, remains an ever-present challenge, with labour shortages and rising machinery costs.