Written by Eva Osborne-Sherlock from Agriland
The number of dairy producers in Great Britain has declined by nearly 6%, according to the Agriculture and Horticulture Development Board (AHDB).
In AHDB’s latest survey of major milk buyers, it is estimated that there were 7,130 dairy producers in Great Britain as of April 2024.
This is a year-on-year estimated decline of 440 dairy producers, or 5.8%.
AHDB senior livestock analyst, Freya Shuttleworth, said there was only a minor loss in producer numbers between April 2023 and October 2023, meaning the majoirty of these producers left the industry over the winter months.
Although milk prices are historically higher, when compared to the peaks in 2022 they have “dropped off substantially”, Shuttleworth said.
This, alongside robust cull cow prices, continued inflationary pressure on key inputs and increased interest rates driving up the cost of borrowing.
This may have incentivised producers to close up shop as farm margins tighten, she said.
For some producers, increased regulatory pressures (such as NVZ’s and slurry storage) could also have been a driver to leave the industry prior to making long-term investment decisions.
Despite falling producer numbers, milk production in the 2023/24 milk season (April 2023 – March 2024) was only back 0.2% year on year.
Grass growth was in line or above the 5-year average for most of the season in 2023 allowing good yield per cow for those on grazing.
“However, wet weather interrupted forage production and many cattle were housed earlier than usual and spring turn out delayed, putting pressure on forage and bedding stocks,” Shuttleworth said.
“This suggests that there has been further movement towards larger farm size over the last 12 months.”
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In AHDB’s latest survey of major milk buyers, it is estimated that there were 7,130 dairy producers in Great Britain as of April 2024.
This is a year-on-year estimated decline of 440 dairy producers, or 5.8%.
AHDB senior livestock analyst, Freya Shuttleworth, said there was only a minor loss in producer numbers between April 2023 and October 2023, meaning the majoirty of these producers left the industry over the winter months.
Pressure points
Although milk prices are historically higher, when compared to the peaks in 2022 they have “dropped off substantially”, Shuttleworth said.
This, alongside robust cull cow prices, continued inflationary pressure on key inputs and increased interest rates driving up the cost of borrowing.
This may have incentivised producers to close up shop as farm margins tighten, she said.
For some producers, increased regulatory pressures (such as NVZ’s and slurry storage) could also have been a driver to leave the industry prior to making long-term investment decisions.
Despite falling producer numbers, milk production in the 2023/24 milk season (April 2023 – March 2024) was only back 0.2% year on year.
Grass growth was in line or above the 5-year average for most of the season in 2023 allowing good yield per cow for those on grazing.
“However, wet weather interrupted forage production and many cattle were housed earlier than usual and spring turn out delayed, putting pressure on forage and bedding stocks,” Shuttleworth said.
“This suggests that there has been further movement towards larger farm size over the last 12 months.”
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The post Number of GB dairy producers drops by nearly 6% appeared first on Agriland.co.uk.
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