Regardless of a lack of dairy farms up to now yr, common milk manufacturing by farm has remained excessive, based on the Agriculture and Horticulture Improvement Board (AHDB).
After the levy board’s most up-to-date survey of main milk consumers, it estimated that there have been 7,500 dairy producers in Nice Britain as of April 2023.
In comparison with the survey of the identical month final yr, this represents a discount of 380 dairy producers.
Nonetheless, milk manufacturing is just not struggling consequently, AHDB stated, pretty much as good climate situations final autumn and the vestiges of upper costs on the finish of final yr meant milk manufacturing by farm remained excessive over autumn and winter months.
Trainee analyst at AHDB, Tom Value, stated milk volumes/farm stay excessive with the most recent figures suggesting that the typical dairy farm in Nice Britain producers 4,500L/day.
Leaving the dairy business
Value stated that the final 12 months have seen extra producers depart the dairy business in comparison with earlier years.
“Although the most recent Agricultural Value Index (API) signifies enter value inflation has eased, inputs prices stay traditionally excessive,” he stated.
“Together with falling milk costs, this has squeezed revenue margins for a lot of dairy farmers.
“The present excessive degree of cull cow costs, in addition to ongoing uncertainties about modifications to agricultural subsidy schemes has led to some producers altering their future course.”
After the publishing of the latest API, AHDB compiled value inflation statistics to point out how farm companies are nonetheless struggling regardless of the easing of inflation.
AHDB stated that, though the API reveals fertiliser value inflation down by 22% within the first two months of the yr, the general value inflation continues to be up by 6% in comparison with February 2022 and 116% above the extent from two years in the past.