UK Dairy Confidence Falls
UK - The results of the 2009 DairyCo Farmer Intentions Survey, this indicates falling producer confidence in the UK.
13 July 2009
2 minute read
The proportion of dairy farmers intending to increase milk production at their lowest levels since the survey began in 2004 while an increased percentage is expected to exit the industry, writes Peter Duggan, Strategic Information Services, Bord Bia.
The number of UK dairy farmers intending to increase milk production has halved to 18 per cent from last year’s survey reflecting reduced milk prices evident. However, two thirds of producers intend to maintain production levels, which represents a rise of 13 per cent on 2008 levels.
Given these results, projections for UK milk output in 2010/11 is set for a drop of more than 5 per cent to 12.2 billion litres.
Within the same survey, low levels of investment on British dairy units for the next five years are anticipated, as the number of producers expected to invest less than £25,000 is expected to increase to 57 per cent. The majority of these producers are those that intend to maintain current level’s of production.
However, the survey results suggest that producers are reasonably confident about the long term prospects for the sector. This is reflected in the fact that almost 80 per cent of those dairy producers intending to remain in the industry for the next two years are confident that their business will still be running in ten years time
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