Britain loses 160 dairy producers in just six months

Great Britain has lost 160 dairy producers in just six months as squeezed margins continue to drive farmers out of the sector.

The latest AHDB survey of major milk buyers estimates that there were 6,850 dairy producers in GB as of April 2026, down 2.3% since the previous survey in October 2025.

Year-on-year, producer numbers have fallen by an estimated 190, or 2.7%, since April 2025.

The figures suggest most industry exits took place last winter, when dairy margins came under renewed pressure.

At the same time, average milk volume per farm has risen by 7.6% to an estimated 1.90 million litres for the year from April 2025 to April 2026.

The data points to the continued consolidation of the dairy sector, with fewer but larger farms producing more milk per business.

More favourable dairy economics during the summer are thought to have slowed the number of farmers leaving the industry, but exits accelerated through the winter as milk prices fell, some farms faced forage shortages and input costs rose.

Farmer sentiment remains largely negative, with milk prices, production costs and falling beef values putting dairy businesses under further pressure.

The latest British Cattle Movement Service figures show the GB milking herd stood at 1.59 million head in April 2026, another record low and down 2.0% compared with the same month last year.

The total GB dairy herd stood at 2.46 million head, also down 2.0% year-on-year.

Milk deliveries have declined in recent weeks, putting a brake on the record-breaking volumes seen in the previous milk season.

The levy board estimates that May deliveries were down 0.9% year-on-year, although the comparison is against a year of record highs and there is still a large volume of milk in the market.

AHDB is due to release its updated quarterly milk production forecast later this month.

Favourable cull cow prices, which remain above the five-year average despite recent pressure, have also encouraged some producers to leave the industry, while continued inflationary pressure on key input costs has added to the challenge.

The latest figures show dairy producer numbers have continued to decline steadily over recent years.

Producer numbers have fallen from just over 8,000 in 2021 to under 7,000 in 2026, while average milk volume per farm has risen from around 1.6 million litres a year to almost 1.9 million litres.

The overall picture is one of fewer farms producing more milk per farm.

Milk prices have stabilised over the past two months, but AHDB said they would need to improve further to rebuild confidence in the sector.

Hopes for recovery will depend on markets, which remain uncertain.

Tracking the true number of dairy producers is difficult because different bodies use different reporting methods.

Food Standards Agency figures can overstate numbers because deregistration is voluntary and may not happen quickly when a farmer leaves the industry.

Defra’s dairy holdings figures are also higher than AHDB’s estimate because they include all farms with a dairy cow over two years old with offspring, including many holdings with fewer than 10 cows.

AHDB said its estimate represents producers actively contributing to GB milk production.

It is based on active and temporarily inactive producers from milk buyers contributing to AHDB’s Daily Milk Deliveries survey, which covers around 84% of milk volumes in GB, with the estimate adjusted accordingly.