Over the past year, 350 dairy farmers in Great Britain have quit the industry due to poor farmgate returns. As of October 2023, there were 7,500 dairy farmers remaining in England, Scotland, and Wales, a 4.5% decline compared to the same period the previous year. The decline is attributed to falling milk prices, which have squeezed the life out of producers making a profit. In September, the average milk price stood at 36.36 UK pence per litre, a drop of almost 13 ppl compared to the same month in 2022. Despite inflationary pressure on key farm inputs easing, farm costs such as energy, fuel, feed, and fertiliser remain historically high, leading to tightening farm margins. On the other hand, average milk production per farm has grown year-on-year but remains steady compared to volumes calculated in April 2023, indicating a shift towards larger farms.
As 2023 progressed, farms focused on improving efficiency and reducing farm costs. Grass growth for the majority of the 2023 season remained above the previous season and the 5-year average, sustaining milk yields from grazing cows. In recent months, GB milk production has begun to ease, with volumes down by 1.3% and 2.7% year-on-year.
