Conversely, milk production has increased in that time. The average yield a cow has more than doubled and the average herd size has increased fourfold. Suppressed demand and increasing supplies continued to push farmgate prices on a downwards trajectory. After the peak seen in January 2023, prices have been consistently falling: in June the average farmgate milk price reached 36.48 ppl according to Defra. Since then, announcements for July and August have continued to fall, although August was a more stable month. There were a continuation of falls in aligned contracts in August with all retailers dropping their prices. Dairy farming around the world panel, featuring Joanna Shipp, Chair (National Dairy Promotion and Research Board); Eduardo Schwerter, President (The Pan-American Dairy Federation – FEPALE); Steen Nørgaard Madsen, Chair (Danish Dairy Board); Margaret Munene, Managing Director (Palmhouse Dairies Ltd.); and, Simon Vander Woude, Chair (California Dairies, Inc.).

January volumes are estimated as data was only available to 28 January at time of publication. Global milk production Planner 2022, Planner Notebook, Personalized Journal, Gifts for Co Worker Personalized Gifts for Women or Men, Diary, Leatherette Journal, Personalized Hardcover Notebook: The NYC Shopper (Custom Notebook l Personalized Diary l Hardcover Journal) By Melsy's Illustrations Based on published Agricultural Price index values for compound feedstuffs for cattle, straight fertilisers (nitrogenous) and fuel (for heating) Friesian Farm, Andersons’ model dairy farm, is used to illustrate trends within the dairy sector for a typical farm. It is not designed to showcase best practiceThe industry desperately needs a single standard. This should include emissions and sequestration, so that the true greenhouse gas output of the dairy sector is understood. Our latest forecastreleased in September predicted milk flows to slow down in the coming months with a conservative fall of at least 0.5% to be expected. There is scope for production to fall further if prices do not begin to recover this side of Christmas. Despite some recent signs of lower inflation in agricultural input costs, replacement costs through 2023 will remain high, putting pressure on cash flows. However, both will reduce at a slower rate than the long-term trend (see “Structural change in the UK dairy herd”); over the past 50 years, for example, 87% of dairy herds have disappeared.

In the longer term, look to maintain and build consumer trust, demonstrating where farming values (animal welfare, environmental stewardship and expertise) are shared with consumers. See our consumer reputation landscape hub for more information. A5 Color Contrast Flower Collection Notebook - 4 Variations - Journal - Diary - Collection - Ruled - hardcover - rubber band 2023 notebook Planner 2022, Planner Notebook, Personalized Journal, Gifts for Co Worker Personalized Gifts for Women or Men, Diary, Leatherette Journal Deliveries since October have been above previously expected levels, boosted by the favourable weather conditions, and high milk prices. In the four months from October to January [1], deliveries were 3% ahead of year earlier levels when production had been subdued by rising costs and concern over margins.In the first four months of this year, cuts to milk prices (excluding aligned) have ranged from 3.5ppl and 10.5ppl, with further cuts expected for May, although Freshways have held price for May while Tesco are returning to its cost model, increasing the milk price by 1.0ppl in May. However, the value of dairy products has been weakening since last autumn, impacting on processors' ability to maintain the elevated milk prices. Added to that, it’s likely processors found it increasingly difficult to pass higher costs into consumer prices in the latter part of the year with demand showing signs of pressure. In 2022, the retail price index rose by 13%, with most of the inflation occurring in the second half of the year. Dairy product prices [3] rose by over 30% in the year, with fresh milk seeing the highest rate of inflation. Future success of the industry will probably continue to depend on ensuring the consumer is properly informed about the world-class standards of health and welfare achieved by UK dairy farmers, and the importance of dairy as a natural component of a well-balanced diet. On retailer aligned contracts there was some minor positivity. Tesco and M&S held their prices for the month, while Sainsbury’s and Co-op announced increases of 0.34ppl and 0.12ppl respectively. An anticipated increase in the number of in-home lunch and breakfast occasions could provide opportunities for butter in sandwiches and on toast. However, the price gap between butter and margarine has increased and there is also heightened consumer awareness of the price of butter due to previous media coverage. We expect this to result in shoppers switching from butter and dairy spreads into margarine and alternatives. In the last recession, baking boomed as people sought out more affordable leisure activities. Whilst this could be replicated in 2023, butter is still seen as substitutable in baking occasions, and it will therefore need to fight to remain relevant. As a result, we expect butter retail volumes in 2023 to be down 3%, however this would still result in category volumes being 3% higher than in 2019. Yogurt:

Global and domestic demand remain subdued. Latest Nielsen figures indicate volume falls in butter (-1.0%), cheese (-1.5%) and milk (-1.7%) although less steep than in previous months, whilst yogurt and cream have returned to modest growth (=0.1% and +0.7% respectively (source: Nielsen Homescan, 12 we 9 Sep 23).Milk from forage reduced for 2022-23 to reflect drought – less silage made and some already fed, higher concentrate use

Global Leaders Forum featuring Piercristiano Brazzale, President (International Dairy Federation); Barbara O’Brien, President and Chief Executive Officer (Dairy Management Inc.); Yohichi Ohnuki, President (Morinaga Milk Industry Co., Ltd.), and Chairman (J-MILK); Miles Hurrell, Chief Executive Officer (Fonterra Cooperative Group Ltd.); Patricia Stroup, Chief Procurement Officer (Nestlé); and, Jayen Mehta, Managing Director (Amul – Gujarat Co-operative Milk Marketing). Global efforts to build dairy demand together featuring Lloyd Day (Inter-American Institute for Cooperation on Agriculture), Ida Berg Hauge (Norwegian Dairy Council) and Ricardo Villavicencio (Canilec). GB milk production is forecast to reach 12.44bn litres for the 2022/23 season, up 0.7% on the previous season, according to the December forecast update. On a calendar year basis, GB production is expected to total 12.43bn litres. This is a 0.3% improvement on 2022, equivalent to an additional 39m litres. The company believes these trends will continue, although yield increases may slow significantly, resulting in a small decline in UK output.

There remain opportunities for growth however, by focussing on the attributes of dairy which remain linked to consumer priorities. GB milk deliveriesfinally began to slow in September, after a strong summer of production,with estimated volumes for the month down by 1.1% year-on-year, or the equivalent of 13 million litres. This means that production is still ahead of 2022/23 in the year-to-date by 0.31%. Some of the drop off has been caused by disruption from milk haulier Lloyd Fraser going into administration mid-month. Anecdotal reports suggested that processors swiftly made other arrangements for collections and that a minimal amount was tipped. However, daily deliveries data indicate some disruption between 11 and 19 September. Before this, GB production had been running below year-ago figures since July 2021, although the year on year growth recorded in March through June was more to do with the sharp enforced reductions in the spring of 2020. An unfavourable milk-to-feed-price ratio, driven by rising feed costs and stagnant farmgate prices, was the key driver of lower yields in the autumn of 2021, although labour shortages will also have played a role. Margin pressures then worsened as global energy prices spiked, with the situation exacerbated by the outbreak of the war in Ukraine. The increase in milk prices through 2022 helped to offset the rising costs and supported improved yields in the final months of the year. Production in Julyis estimated to have totalled 1,028 million litres, ending the month at 0.8%, or 8.6 million litres, ahead of July last year. This is unsurprising when you consider that in July 2022 we were in the midst of a prolonged drought period, whereas July this year was one of the wettest on record.