UK Dairy Farmers Face Financial Strain as Milk Prices Lag Behind Production Costs
Source: The DairyNews
According to a recent report by Kingshay, a consultancy firm, many UK dairy farmers continue to struggle financially, as the cost of milk production consistently surpasses farmgate milk prices.
The annual Dairy Costings Focus report, which analyzed data from over 1,000 dairy herds, revealed that the average milk price for the 12 months ending March 31 was 38.2 pence per liter, marking a 17% decrease from the previous year.
Kathryn Rowland, senior farm services manager at Kingshay, noted that although there was a slight increase in milk prices since they hit a low in July of the previous year, the improvement was minimal. "The current prices are still lower than the cost of production for many producers, posing significant profitability challenges on farms," Rowland explained.
The report also highlighted a marginal increase in herd size, with an average of 219 cows per herd. Milk yields per cow remained steady at 8,441 liters, aligning with last year's figures. However, milk production from forage decreased by 3%, totaling 2,691 liters per cow, leading many herds to increase their use of concentrates to maintain milk yields.
Despite these challenges, a reduction in the annual cost of concentrates to £339 per ton and total purchased feed costs of 12 pence per liter provided some financial relief. This situation underscores the ongoing economic pressures faced by the dairy farming sector in the UK.
Kathryn Rowland, senior farm services manager at Kingshay, noted that although there was a slight increase in milk prices since they hit a low in July of the previous year, the improvement was minimal. "The current prices are still lower than the cost of production for many producers, posing significant profitability challenges on farms," Rowland explained.
The report also highlighted a marginal increase in herd size, with an average of 219 cows per herd. Milk yields per cow remained steady at 8,441 liters, aligning with last year's figures. However, milk production from forage decreased by 3%, totaling 2,691 liters per cow, leading many herds to increase their use of concentrates to maintain milk yields.
Despite these challenges, a reduction in the annual cost of concentrates to £339 per ton and total purchased feed costs of 12 pence per liter provided some financial relief. This situation underscores the ongoing economic pressures faced by the dairy farming sector in the UK.
