News milk
British milk production rises to 13 billion litres as prices fall
British milk production is expected to reach a record high of nearly 13 billion liters this year, according to industry body AHDB. Milk production is abundant, but milk prices are also being lowered in the UK, it appears.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Dairy giant Arla, also a major player in the United Kingdom, lowered its milk price last week by the equivalent of €1,86 to €48,67 per 100 liters for November. Müller UK, the second-largest player, lowered its milk price for December by €1,71 to €45,59 per 100 liters.
Prices still seem to be good here, and the ratio of milk price to concentrate costs is still relatively favorable, but other costs, such as energy, roughage, and financing costs, are high, which is why many farmers are starting to worry about the margin.
For that reason, they're trying to keep up their milk production. That way, at least there's a good cash flow. Although milk production has increased significantly this year, the livestock population is declining, as is the case in neighboring countries. According to the latest counts, which date from June, the dairy herd has decreased by 0,6% compared to a year earlier.