June 17, 2026

 

UK dairy sector continues to see departure of producers

 

 

Dairy producers in the United Kingdom continue to exit the industry at an alarming rate, with nearly 200 fewer dairy farms operating in April 2026 compared with the same time last year.

 

Just 6,850 producers were left in Great Britain as of April, according to AHDB estimates, which represents a 15% reduction in the number of dairy enterprises in the past five years.

 

Challenging market conditions, with falling farmgate milk prices during the winter months, have placed additional pressure on primary producers, with ever-increasing environmental regulation also having an impact.

 

The dairy herd has also been in decline, with the British Cattle Movement Service estimating the total GB milking herd at 1.59 million head in April, a 2% reduction on the year.

 

Soumya Behera, senior dairy analyst at the AHDB, said: "Favourable dairy economics during the summer months [of 2025] would have stemmed the flow of producers leaving the industry.

 

"However, this accelerated during the winter months as margins were squeezed following the decline in milk prices, forage shortages for some, and increasing input costs."

 

There has also been further consolidation of businesses, with larger farms accounting for a greater proportion of total milk production.

 

The average milk volume per farm has increased to almost 1.9 million litres a year, up by roughly 300,000 litres since 2021.

 

Behera said: "Favourable cull cow prices and continued inflationary pressure on key input costs incentivised some producers to exit the industry as farm margins tighten.

 

"Farmer sentiment is largely negative, with squeezes on both milk prices and costs of production, and now a falling beef price putting dairy farm businesses under increasing pressure."

 

- Farmers Weekly