Tridge summary
The Agriculture and Horticulture Development Board (AHDB) has revised its milk production forecast, predicting a slight increase of 30 million liters from its June projections, totaling 12.26 billion liters for the current season, which is 0.8% lower than the previous season. This adjustment is attributed to a small rise in herd numbers, particularly youngstock. However, the industry faces challenges such as rising energy prices, fuel, and fertilizer costs, which have not yet significantly impacted the sector but are expected to as more fixed-price contracts end. Additionally, global dairy markets are experiencing a decline due to high prices, which could affect processors' ability to maintain high prices. The UK has seen a 11% increase in dairy product imports year over year, with cheese and curd being the most imported products, and raw milk imports from Ireland increasing by 31%. The total value of dairy imports has risen by 30% to £1.7bn.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The Agriculture and Horticulture Development Board (AHDB) expects milk production to tick up modestly compared to its June forecast. The body now estimates that additional 30 million liters of milk will be produced, bringing the UK milk production for the current season to 12.26bn liters, or 0.8% less than the previous season. The slight forecast change is due to ‘marginally higher’ herd numbers, specifically youngstock. AHDB senior analyst Katherine Jack has warned that the effects of rising energy prices, fuel and fertilizer are yet to be felt across the industry, and may become more evident as more fixed-price contracts expire. “While high milk prices have been helping cover these costs, price increases are starting to slow down,” Jack stated. “Additionally, global dairy markets are facing some downwards pressure as demand responds to high prices. Sustained reductions in demand could make it harder for processors to maintain high prices over the coming months.” Meanwhile, the ...
Source: Dairyreporter
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