Dairy market review in the UK on October 2023

GB milk deliveries reached an inflection point in October with GB milk deliveries declining by -2.8% year-on-year, an equivalent of a loss of 29 million litres. This year’s milk season (April-Oct) production totals 7,276 million litres so far, a slight drop (0.1%) compared to the same period of 2022. The Milk forecasting forum predicted a loss of 0.5% for the 2023/24 milk year. While grass growth rates have remained exceptional for the time of year, too much precipitation in many areas has meant many cows have been brought into sheds sooner than expected so not able to capitalise on available grass. We are also now annualising against the Autumn of 2022 which saw exceptional production following great grass growing conditions after the summer drought, paired with rising milk prices. Agricultural deflation on fuel, feed and fertiliser may have continued, but many input costs remain at high levels and generalised inflation on many other smaller inputs remains problematic. The ...