Hundreds of dairy farmers have quit the industry this year due in part to continued inflationary pressure on key inputs, AHDB's latest survey shows.
In the levy board's survey of major milk buyers, it is estimated that there were 7,130 dairy producers in Great Britain as of April 2024.
Year-on-year, this is an estimated decline of 440 dairy producers, constituting a fall of -5.8%.
Although milk prices are historically higher, when compared to the peaks in 2022, they have dropped off substantially.
This, alongside robust cull cow prices, continued inflationary pressure on key inputs and increased interest rates driving up the cost of borrowing, may have incentivised producers to quit as margins tighten.
For some farmers, increased regulatory pressures, such as NVZ’s and slurry storage, could also have been a driver to leave the industry prior to making long term investment decisions.
Freya Shuttleworth, AHDB's senior analyst, said that despite falling producer numbers, milk production in the 2023/24 milk season was only back 0.2% year on year.
She explained: "Grass growth was in line or above the 5-year average for most of the season in 2023 allowing good yield per cow for those on grazing.
"However wet weather interrupted forage production and many cattle were housed earlier than usual and spring turn out delayed, putting pressure on forage and bedding stocks.
"Average milk production per farm has seen good growth and according to BCMS data, the GB dairy herd has been flat year on year.
"This suggests that there has been further movement towards larger farm size over the last 12 months."
