UK: February 2024, dairy market review

GB milk deliveries are estimated to have totalled 973 million litres in the 29 days of February 2024 with an average of 33.6 million litres per day. This would mean a decline of 1.1% year on year. Production for the milk season to date (April to January) totals 11.23 billion litres, slightly behind (-0.6%) the same point in 2023. This is currently running ahead of the latest forecast revision, which is due to be revised in March ahead of the flush. This is the lowest milk volume recorded since the 2016/17 milk season. The decline in volume is most likely to be driven by reduced yields as the GB dairy herd recorded only marginal change year on year in the latest BCMS data. Although farmgate milk prices have seen some improvement in the most recent months, many producers are still struggling with high input costs and interest rates eroding farm margins and working capital. This is providing little incentive to push cows. An extremely wet start to the year will not help in allowing ...