UK milk production projected to rise 1.1% in 2025

UK – British milk production is projected to increase by 1.1% in 2025 despite challenges experienced in the early months of the 2024/25 milk year, according to a report by the Agriculture and Horticulture Development Board (AHDB). 

The sector faced a slow start due to unfavorable weather and low prices, but conditions began improving in September as rising prices and better margins supported milk flow recovery.

AHDB senior dairy analyst Susie Stannard reported that stronger milk-to-feed ratios and increased prices are motivating higher production.

“While signs of recovery are visible, the sector must remain vigilant against global risks, including unstable commodity prices and potential disease outbreaks,” she stated.

Milk prices remained firm in the short term, averaging 45.14ppl in October 2024, though a decline is possible as production increases while consumer demand stabilizes in 2025.

Household milk consumption has slightly decreased as more employees return to office work, though retail demand remains steady. 

Cheese consumption is expected to rise due to ongoing promotions, while butter faces competition from plant-based alternatives.

Yogurt sales are forecasted to grow, driven by increasing consumer health awareness.

Stannard also noted the resilience of the dairy sector despite past difficulties.

“The dairy sector has demonstrated resilience despite significant challenges, although future success will depend on balancing production increases against demand fluctuations and external pressures.”

With disease control measures and policy changes influencing market conditions, the industry approaches 2025 with cautious optimism. 

The AHDB is also set to release Agri-Market Outlooks for other sectors, including Beef, Lamb, Pork, Cereals, Oilseeds, and Farm inputs in the coming months.

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