The NFU’s Dairy Intentions Survey of almost 600 UK dairy farmers has found that insufficient returns, volatile markets and the scale of on-farm investment required are all reasons why many of Britain’s dairy farmers are thinking hard about their future in the sector.
In addition to those who are looking to stop production all together, a further 23% of all milk producers have said they are ‘unsure’ if they are going to continue production beyond the next two years.
Smaller enterprises producing less than 1 million litres of milk per year are also more likely to stop production before March 2025, compared to those producing higher volumes.
Based on figures from the ADHB, there are currently an estimated 7,500 dairy producers in Great Britain, a figure which has decreased by 4.8% since last year.
- Over half (52%) of producers stopping production are unable to keep up with the scale of investment required for their enterprise to stay compliant, such as slurry storage, a factor that is a main key for the majority (91%) to increase production in the future.
- Increases in input prices such as feed (84%), energy (83%), and fertiliser (74%) are all particular areas of worry.
- Over one third (36%) of those ceasing production are doing so due to retirement, with almost a fifth (18%) handing over their farm to the next generation.
“With increasing global demand for British dairy, we know that the long-term future is bright for our sector. To ensure we maximise this potential, it’s imperative that government continues to work with us to ensure we have the right environmental, regulatory and trade framework in place to continue to support the production of high quality, nutritious and sustainable food.”
NFU Dairy Board chair Michael Oakes
Fairer, more transparent supply chains needed
The survey results identified that supply chain fairness was a factor that almost 90% of dairy producers felt was important to support an increase in milk production.
Despite the concerns shared by the vast majority of producers, new industry-wide contract regulation expected to come in later this year “must support fairer, more transparent and accountable supply chains,” said NFU Dairy Board chairman Michael Oakes, albeit stressing that regulation is not a “silver bullet”.
Michael also called on further government support and investment, stressing the need for this in order for the industry to meet its environmental targets whilst continuing to produce high-quality dairy products for the public.
Speaking on inflation and production costs, he said it is obvious these factors are putting the long-term resilience of dairy farming “under threat”, leading to a “crisis of confidence” amongst British dairy farmers, despite increasing global demand for British dairy.
Labour concerns hoped to be addressed
Better access to labour is also a key component that producers feel is needed to increase production, with almost three quarters (74%) of respondents seeing this as a barrier to the growth of their business.
In a response to the Migratory Advisory Committee’s call for evidence on the Shortage Occupation List, the NFU has called for the role of dairy technician to be added, to help alleviate some of the labour woes the sector is facing.
