Dairy farmer contraction shows first signs of slowing

The exodus of British dairy farmers is slowing after a year when near-record numbers quit the industry.

New figures show that, although around 300 ceased milk production in the 12 months to October 2024, only 30 of those were in the second half of the year.

See also: Dairy sector contraction – what is the true cost?

The Agriculture and Horticulture Development Board’s (AHDB) latest survey found that in October 2024, there are 7,200 milk producers in Great Britain.

300 dairy farmers – 4% of producers – quit in the 12 months to October 2024, but AHDB livestock analyst Annabel Twinberrow said most of these left last winter.

Continued pressure on margins and strong cull cow prices could have incentivised some of those decisions, she suggested.

In contrast, the recovery of the milk price in the summer could have slowed the rate of farmers exiting the industry.

It comes after a 4.5% decline in GB dairy farm numbers in the 12 months to April 2024, one of highest levels in the five years since AHDB first collated the figures.

AHDB’s figures initially pointed to 5.8% exiting in the industry during that period, but it has now revised that figure based on milk buyer data.

The latest figures also show that dairy farms are getting bigger, with the average now producing 1.7m litres annually.

“With milk prices increasing since April, we expect the recent increase in GB milk production to continue for the remainder of the season,’’ said Ms Twinberrow.