UK Witnesses Nearly 5% Drop in Dairy Farms Over the Past Year
Source: The DairyNews
The latest survey by AHDB on milk buyers reveals that the number of dairy farms in the UK has decreased by almost 5% in the past year.
The industry has seen 350 farmers exit, leaving a total of 7,500 across the UK, with Scotland experiencing a 3% reduction. The decline is attributed to diminishing returns, with the average milk price falling by 13 pence per litre in the last year.
High input costs have also played a role, and while they have eased somewhat recently, they remain significantly higher than pre-Ukraine war levels. Milk volumes are now over 3% below the previous year, according to the Scottish Farm Advisory Service.
Analysts suggest that prices may have hit the bottom and anticipate an improvement in 2024. The cost of production stands around 37 pence per litre, exceeding what many Scottish milk buyers are currently paying. The milk-to-feed price ratio, calculated by AHDB and Defra, is at 1.18, lower than the previous year's 1.39. A ratio below 1.16 could indicate an impending reduction in output.
On a brighter note, the beef trade has experienced a festive uplift, with improved retail demand as Christmas approaches. Prime cattle prices are supported, and figures from QMS reveal that cattle and sheep prices are 25% above the five-year average. With prime cattle numbers remaining tight and early festive demand, auction marts report a robust trade and increased prices.
Additionally, the export market remains favorable, as the reduced number of lambs on the Continent and high European prices make UK lamb competitive. As Christmas approaches, a reported 15% reduction in turkeys may boost sales of pork, beef, and lamb during the festive period.
High input costs have also played a role, and while they have eased somewhat recently, they remain significantly higher than pre-Ukraine war levels. Milk volumes are now over 3% below the previous year, according to the Scottish Farm Advisory Service.
Analysts suggest that prices may have hit the bottom and anticipate an improvement in 2024. The cost of production stands around 37 pence per litre, exceeding what many Scottish milk buyers are currently paying. The milk-to-feed price ratio, calculated by AHDB and Defra, is at 1.18, lower than the previous year's 1.39. A ratio below 1.16 could indicate an impending reduction in output.
On a brighter note, the beef trade has experienced a festive uplift, with improved retail demand as Christmas approaches. Prime cattle prices are supported, and figures from QMS reveal that cattle and sheep prices are 25% above the five-year average. With prime cattle numbers remaining tight and early festive demand, auction marts report a robust trade and increased prices.
Additionally, the export market remains favorable, as the reduced number of lambs on the Continent and high European prices make UK lamb competitive. As Christmas approaches, a reported 15% reduction in turkeys may boost sales of pork, beef, and lamb during the festive period.
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