British milk production increases, cheese exports flourish

Milk production in the UK increased by 4,35% year-on-year, reaching 1.295 million litres in January. The annual average rose from 1.253 million litres in December to 1.257 million litres in January, representing a month-on-month increase of 0,36%.

The increase in milk production coincides with a decrease in the herd. On 1 January, the dairy herd in Great Britain – figures are available for both the UK and Great Britain, so excluding Northern Ireland – numbered 1,62 million animals, a decrease of 0,9% year-on-year. The culling of cows (mainly those over six years old) contributed to the decrease in the number of cows and the rejuvenation of the herd. In January, the average age of a dairy cow was 4,51 years. The younger herd may have contributed to higher milk production per cow and higher total milk production.

In addition, there was a clear decrease in the number of calves and young cattle. The number of animals younger than two years old decreased by 2,4% to 910.000. This may make it difficult to replace dairy cows in the future.

Milk production boosted by higher prices
Higher milk prices have motivated dairy farmers to increase milk production. In January, milk prices averaged 46,01 pence (€0,55) per litre, up 1,23% on the previous month and up 19,57% on a year earlier.

According to Rabobank, improved weather conditions in the second half of 2024 have contributed to a better feed supply and lower feed costs. Productschap AHDB expects that with the increase in milk production, feed use will increase in 2024/25. The composition of animal feed is expected to change, as global grain supplies are under pressure due to supply problems in the Red Sea and a decrease in corn production. A possible increase in soybean production and falling oilseed prices could ensure that an increase in feed costs remains limited.

Prepare for unexpected weather conditions
Given the critical role of weather conditions in feed availability, milk production and costs, AHDB emphasises the importance of preparing for extreme weather events. Increasingly unpredictable weather patterns, particularly heatwaves and flooding, pose a risk to the dairy sector, the board says.

Rising temperatures and heatwaves can lead to heat stress and reduced milk production, while flooding can damage infrastructure and disrupt feed supplies. To reduce these risks, AHDB recommends that farmers prepare for them, including through improved housing and water management.

British cheese in demand 
Although milk production increased in January, production of various dairy products showed mixed results. Cheese and milk powder production increased by 5,04% and 1,59% respectively compared to the previous year. In contrast, butter production decreased by 9,25% during the same period. Cheese remains the largest dairy product by volume, with a total production of 43.800 tonnes. Cheddar makes up the largest share within this category, accounting for 72% of total cheese production. Milk use for cheddar production was 295,4 million litres in January, an increase of 3,5% compared to the previous year.

The UK exported a significant proportion of its dairy production in 2024. Total dairy exports were 1,22 million tonnes, a slight decrease of 0,32% on the previous year. The value of exports also decreased marginally by 0,29% to £1,84 billion (€2,18 billion) according to AHDB. The European Union remained the largest export destination for UK dairy, accounting for over 75% of the total export value of £1,4 billion (€1,7 billion). The US was the second largest destination, mainly for cheese. Cheese exports to the US increased by 13,5% to £75 million (€89 million) in 2024. In addition, exports to the United Arab Emirates grew strongly, by 18,9% year-on-year to £36,2 million (€43 million). Cheese was largely responsible for this increase, with its export value rising by 52,5% to £23,2 million (€27,5 million).

UK dairy sector on alert for foot-and-mouth disease
The UK dairy sector remains vigilant for potential outbreaks of livestock diseases. Following an outbreak of foot-and-mouth disease in Germany, a new case has been reported in Hungary near the border with Slovakia. As a result, the UK authorities imposed a ban on the import of meat and dairy products from Hungary and Slovakia on 7 March. The restrictions also apply to products brought by travellers from these countries.