Record milk production as UK dairy output surges past 13bn litres

Milk output continues to rise despite falling prices, putting pressure on dairy farm margins
Milk output continues to rise despite falling prices, putting pressure on dairy farm margins

GB milk production has hit a record high, with the 2025/26 season total reaching 13.02 billion litres, according to the latest AHDB analysis.

Milk output in March is estimated at 1,132 million litres, up 1.8% year-on-year, with daily volumes averaging 36.51 million litres — reinforcing strong supply levels across the sector.

The latest increase pushes total production for the season up 5.0% compared to the previous year, marking the highest volume ever recorded for a milk year.

However, higher output is not necessarily translating into improved returns for farmers.

Despite milk prices falling since late autumn, production has remained resilient. AHDB said the milk-to-feed-price ratio has stayed in the “expansion zone”, helping sustain output when seasonal factors and milk composition are considered.

At the same time, April milk price announcements have largely held steady — but at levels widely viewed as unsustainably low for many producers, particularly as input costs continue to rise and squeeze margins.

This means higher volumes are being produced in an increasingly challenging financial environment for dairy farms.

Rising supply is also raising concerns over processing capacity, particularly as the spring flush gathers pace and additional volumes come onto the market.

Against this backdrop, favourable weather has helped underpin production. The Met Office reported a warmer-than-average March, followed by continued sunshine into early April, boosting grass growth and forage availability.

With margins under pressure, maximising value from forage remains critical for maintaining profitability.

However, sustained high output in a low-price environment risks placing further strain on already tight margins across the sector.

AHDB noted that industry discussion at the latest milk forecasting forum suggests elevated production levels are likely to continue until at least the second half of the milk year, despite pressure on farmgate returns.


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