uk dairy industry statistics 2020

Milk accounted for 16.9% of total agricultural output in the UK in 2018 and was worth £4.5bn in market prices. This came in part from delays at ports and borders, and in part from reduced demand for imported product. Milk saw strong volume growth at +7%, accounting for 65% of dairy retail gains. 2021 milk production is expected to be 0.5% up on 2020* overall in GB. In 2019, the UK recorded a trade surplus in volume terms for dairy for the first time since records began (1997). Otherwise by continuing to use the site you agree to the use of the cookies as they are currently set. The UK trade surplus for all dairy products fell in 2020. 18 March 2021 Labour costs in agriculture stable in 2020 If there are delays or setbacks to the recovery in foodservice demand, this will keep a lid on liquid prices. As a staple product, we expect dairy to continue to do well in to 2021. Global trade is expected to continue growing long term, but could see continued bumps in the road in 2021. This briefing paper sets out key statistics and current trends for the UK dairy industry. This differs from 2019 where total dairy struggled to find growth, due to lacklustre performance in milk and yogurt. Reduced demand from the foodservice sector has affected import demand both here and abroad. However injury rates (injuries per 100,000 workers) vary widely between the 30 or so different food and drink industries. Increases in cooking from scratch has benefitted a number of dairy categories. Get the latest trends and understand the impact of the crisis on the market. Domestic milk production is expected to grow slightly in 2021, as it starts the year with strong yield growth. Some of the trends that emerged during 2020 are expected to continue through the next year. This supported production going into the New Year. ... Mon 15 Jun 2020 02.01 EDT. Prices of EU Dairy commodities evolutive* (Source: Regulation (EU) No 2017/1185 Article 11 - Annex I.7) * EU evolutive: EU-15 (before 2004), EU-25 (2004 to 2006), EU-27 (2007 to 2013), EU-28 (2013 to 01/2020), EU-27 without UK (from 02/2020 onwards) Discover the latest market trends and uncover sources of future market growth for the Dairy industry in United Kingdom with research from Euromonitor's team of in-country analysts. Through 2020, cheese saw volume growth in retail of +15%. Summary . © Agriculture and Horticulture Development Board 2021 | All Rights Reserved, Agriculture and Horticulture Development Board, Stoneleigh Park, Kenilworth, Warwickshire, CV8 2TL. Copyright © 2021 House of Commons Library. Find out more about how we use cookies. The 30 biggest wholesalers in the UK 2020. The continued impact of the pandemic on the supply/demand balance could keep some pressure on prices in the first part of the year. The agriculture industry relies on a combination of seasonal and permanent workers, many of whom come from EU countries. White Milk: Fresh, ambient, and powdered formats. Dairy farmers in Britain suffered a 50% reduction in their profits in just one year as the demand for cow’s milk steadily declines. Yoghurt will continue to see elevated levels in the first half of the year as we have more lunches and snacks at home. Like many products in dairy, butter and spreads is expected to see a surge in demand in 2020 as a result of stockpiling during the COVID-19 pandemic. This is of particular concern for cream and skim concentrate, as the short shelf life of these products means there is limited time to procure the necessary paperwork to export. Access new updated reports and statistics for the Dairy Products Industry in the United Kingdom. All rights reserved. A short overview of some of the changes that took place for the fisheries industry on 1 January 2021 after the Brexit transition ended. Both categories will see strong growth on 2019 levels, but perhaps not so much volume passing through retail as in 2020. Progressive Dairy magazine is printed 20 times each year for forward-thinking U.S. dairy producers. The agreement of a trade deal with the EU, in which no quotas or tariffs will be charged, is welcome news for the UK dairy market, as the vast majority of our dairy imports and exports are traded with the EU. The UK’s annual emissions are 350m tonnes a year. However, until there has been sufficient recovery in markets to restore a good supply/demand balance, the pandemic will continue to inhibit positive price movements. Global milk supplies from the main dairy exporters are forecast to show moderate growth in 2021. However, it is difficult to know the size of the agriculture labour market and the role of migrants within it because there are no official data sources designed to understand this particular issue 1.. Data about the industry are collected in varying … If the country stays locked down, in theory, capacity should be sufficient to get us to mid-April, provided absenteeism isn’t higher than it was during spring 2020. But as we go in to a new normal in the second half of the year, we could see the declines we saw in 2019 start to creep back. Dairy Industry Statistics and Trends. The restrictions put on production last spring are not expected to be repeated in 2021, due to the difference in lockdown timing and as the industry has adapted since last year. We run a dairy processing company in rural Kenya, for example. Notably, 85% of … Consolidation in the dairy industry saw four out of five dairy farms close in the EU from 1981-2013. Recipe inspiration is key here, To make the cooking experience easier and more convenient many restaurants have pivoted to providing at home meal kits. Thanks to the vaccination program, the route out of this latest lockdown seems more certain. Please contact DIN’s administrator, Carolyn Moore, if you need assistance or wish to subscribe. Health was less of a priority for many during 2020 so consumers treated themselves and upgraded the everyday with dairy. There is a real opportunity for helping consumers to replicate food service experiences in home, With children at home for the early part of 2021, encouraging baking and savoury cooking with the family could be a short term win for dairy. According to Office for National Statistics data, the average weekly hours worked in agriculture, forestry and fishing is 43.9 (47.1 for men only), which is well above the UK average of 32.1 hours. This came in part from delays at ports and borders, and in part from reduced demand for imported product. Shoppers increased how often they bought cream, with an average of 14.2 times in the year compared to only 12.6 in 2019. Cheeses which saw the fastest growth were mozzarella, paneer and halloumi, but cheddar still accounted for just under half of volumes gains. 1. However, demand will still be limited by these restrictions, advice to stay home, and the reduction in schools and hospitality catering. Strong yield growth towards the end of 2020 also supports 2021 expectations. This Fact Book has been pro-duced as part of a three-year campaign ‘Sustainable Dairy in Europe’, launched by the Euro - pean Milk Forum, co-financed by the EU Commission. National Dairy Councils from Ireland, Northern Ireland, Denmark, France, Belgium and The Neth- Demand at a global level is mixed, depending on each country’s pandemic management and economic recovery. This will add extra time and cost to trading. In 2018, the UK had a negative trade balance in butter and cheese, but a positive trade balance in milk and cream. If you have just purchased a subscription and are seeing this message, please wait a short while for authorisation. Certain cheeses, such as mozzarella, will have seen increased demand from the foodservice market as, despite closures, some dishes have seen growth. UK demand dynamics are still uncertain, but a successful vaccination program should enable a return to relative normality by late 2021. Through 2020, all major dairy categories have seen retail growth in both spend and volumes. Butter, cream and cheese all saw double digit growth in 2020. As a result of these anticipated trends, we expect all major dairy categories to see growth in retail volumes compared to 2019. Therefore, the spring flush (April-June) is projected to be up 39 million litres (1.2%) on 2020. Visit the Dairy market analysis page for the latest information and insights to guide you through market movements. However, there is now additional trade friction from new requirements for paperwork, health certification, etc. Mintel’s definition includes: 1. Editorial note: Throughout this article, which deals with time periods when the United Kingdom was a Member State of the European Union, the acronym EU, however, refers to EU-27, the post-Brexit composition of the European Union as of 1 February 2020. Please Log in to view Dairy Industry Newsletter. For example 6% more pizzas were sold this year compared to last, driven by takeaways (AHDB/Kantar Out of home, 52w/e 4th Oct 2020). This briefing paper sets out key statistics and current trends for the UK dairy industry: The UK is the eleventh-largest milk producer in the world. They forecast a 9.2% decline in the volume of world merchandise trade for 2020, followed by a ‘weak recovery’ of a 7.2% increase in 2021. The uplift predominantly came from increased volume per buyer. On a global level, trade will be dependent on recovery. Milk accounted for 16.9% of total agricultural output in the UK in 2018 and was worth £4.5bn in market prices. There, we partner with 500 small-scale farmers. Sales of milk within the catering and industrial sectors, as well as welfare milk supplies, are excluded, though reference may be made to these where relevant. However, as 2020 was such an extraordinary year for grocery, many categories will struggle to see year-on-year growth compared to last year. alongside the milk utilisation data, gives a comprehensive overview of the UK milk market and is used heavily by the dairy industry, in particular the division of the Agriculture and Horticulture Development Board (AHDB) known as DairyCo (who represent milk producers) and Dairy UK … And this is not just relegated to the dairy industry. On the positive side, this additional cost is still much less than if we’d also had tariffs to contend with. These issues will continue into early 2021, but will hopefully diminish in the latter part of the year as the pandemic situation improves. ... Who owns the dairy industry? Consumers are likely to continue cooking more meals from scratch, particularly as budgets are likely to remain stretched and consumer confidence is weak. Dairy UK is a member of the EDA, and together they have developed a EU-UK dairy framework, based on the common belief that it would be detrimental to both the UK and EU27 dairy sectors if the UK leaves the EU Single Market and Customs Union without a trade agreement or an alternative solution to … For more information on the scenario please click here, Visit the retail and consumer page for more insight. (For more information on herd expectations, see our beef market outlook). The UK is the eleventh-largest milk producer in the world. It is hoped that vaccinations and economic recovery will improve consumer confidence as the year progresses. Weekly finished auction markets by region, Pig performance trends and COP sensitivity for feed and performance, We are currently expecting GB milk production to total 12.56 billion litres for the 2020/21 season, up 0.2% on 2019/20*, according to our December forecast. The 10 biggest dairy companies in the UK. UK Dairy Industry Statistics (730 KB, PDF). Butter benefitted from baking trends last year, seeing volume growth in retail of +18%. On the import side, there are a few more month’s grace where the paperwork changes aren’t required until staged changes in April and July 2021, but companies will still have to adjust. 3 UK Dairy Industry Statistics . This is partly due to the curbing of the 2020 spring flush, which is not expected to be repeated in 2021. The EU deal is positive news for UK dairy trade, but trade friction will still have an impact, particularly on short-shelf-life products. Out-of-home demand is a key area of uncertainty for the dairy markets, and how soon it is able to return to relative normality will be a key factor in the development of the dairy markets in 2021. Introduction. Growth for speciality cheeses, cream and yoghurt could be found by expanding consumer repertoires to use in scratch cooking and more savoury dishes. Dairy is found to be the number one agriculture business for California, Idaho, Arizona, Utah, New Hampshire, Michigan, New Mexico, New York, Pennsylvania, Vermont, and Wisconsin. Cheeses used in cooking have done well. Get all the latest statistics and news on the UK, EU and world dairy markets, straight to your inbox. The coronavirus pandemic disrupted trade in 2020 and is likely to continue to do so into 2021. It is expected that growth in yields will offset the long-term downwards trend in herd size. UK Dairy Industry Statistics (January 2016) provides information on a range of dairy industry trends and intra-UK comparisons. For example, if difficulties with exports continue, from lower demand or trade friction, this could keep more product on domestic markets. 14th September 2020 – Dairy UK has published findings from its annual Benchmarking Survey, which in its 11th year has once again shown processor achievements in improving environmental performance. With health less of a priority this year and increases in hot breakfasts, yogurt struggled to find the growth which other dairy categories have seen. 2020-02-21T10:40:00Z. The World Trade Organization (WTO) revised their world merchandise trade volume projections in October 2020. There is unlikely to be the spare capacity to cope with a bumper spring. The closure and restrictions on foodservice are likely to have impacted cheese and butter. The total number of UK dairy cows has fallen from 2.6 million in 1996 to 1.9 million in 2018, a 27% reduction. Milk at home was boosted by an increase in hot drinks occasions as we spent more time at home and less time on the go. We expect to see elevated retail demand continue while restrictions persist, then out-of-home demand will rise as restrictions ease. Here we look at UK prices, producer numbers, consumption, production and trade figures. Supply chains were disrupted following the lockdown imposed to suppress the coronavirus outbreak in March 2020. dairy sector is focused and working hard to be part of the solution. However, processing capability could still be a concern if, among other factors, foodservice demand remains limited, or coronavirus increases absenteeism in plants. Key statistics and current trends for the UK dairy industry, including farm-gate prices, UK herd size, production, international trade and domestic consumption. If this balancing was disrupted during the flush, when processing capacity is tight, it could put pressure on the markets. The UK produced 15.0 billion litres of milk in 2018, the highest annual figure since 1990. Search industry reports, statistics & slideshows. Working more from home is likely to be a legacy of the pandemic, even after the latest lockdown eases, so we expect there to be more at home meal occasions, especially for drinks, snacks and lunches through the year. Statistics from FarmingUK’s 2018/2019 report, shared at a recently held Dairy Show, found that comparable farm profits dropped from 5.9p per liter (£383 per cow) to 2.69p per liter (£131 per cow) in the first quarter of 2019. Global prices ended 2020 relatively strong thanks to rallies in Q2 and Q3. and secure manner. To find out more, please see our inputs outlook. Please contact DIN’s administrator, Carolyn … Here are the top 10 dairy processors in the UK, ranked by turnover. Britain’s dairy industry, renowned for its quality, is well placed to grasp the opportunities that increasing global demand for milk and dairy products provides. You can download the gallery infographics in a handy A4 poster. Dairy farms are found in all 50 states of the United States to include Puerto Rico. It provides a range of vitamins and minerals which could not be easily substituted, leaving many consumers struggling to replace the valuable package of nutrients they get from dairy,” Bryans said. Our markets are still adjusting to the new EU trade rules, particularly on the export side. *2019/20 and calendar year 2020 are both leap-year adjusted to reflect 365 days equivalent. UK total dairy exports were down 11% on the year for January-November 2020, and imports were down 7%. We are currently better placed than we were in the first lockdown, as a number of foodservice outlets have been able to maintain some business through delivery and takeaway. the UK dairy industry. This is related to the fact that these products are often staple products in consumers’ diets. Milk production in the United Kingdom (UK) 2001/02-2019/20 Published by M. Shahbandeh, Nov 25, 2020 During 2019/20, about 15 billion liters of milk were produced in the UK. Increases in at-home lunches and sandwiches in particular have benefitted butter and cheese. Growth in global milk supplies from the top exporting regions is currently expected to be around 1% for 2021. “Dairy forms and important part of UK diets, beyond the mere provision of protein. Subscribe to receive email alerts every time we publish new research about the topics you’re interested in. The award-winning magazine's editors and contributors provide compelling features, helpful articles, insightful news analysis, and entertaining commentary about the people, practices and topics related to a dairy … Butter and cheese sales through retail benefitted from the closure of workplaces and foodservice and we expect this to continue for lockdown 3 and beyond as many consumers are still tentative about returning to the office and eating out as much as they did before. Those that are still struggling with outbreaks and depressed foodservice demand continue to be at risk of economic downturns, which could affect import levels through 2021. Pivot products for use in scratch cooking. Although UK dairy exports are growing, and the long term outlook for the industry is positive, current volatility in milk prices has caused concern. UK total dairy exports were down 11% on the year for January-November 2020, and imports were down 7%. • The UK is the eleventh-largest milk producer in the world. Lower inventories in Europe and the US by the end of 2020 have also helped support prices. This article presents information and statistics on milk and milk products in the European Union (EU). This report examines the UK retail market for milk, milk drinks and cream, including products sold via doorstop delivery as well as retail outlets. The coronavirus pandemic disrupted trade in 2020 and is likely to continue to do so into 2021. Dairy UK chief executive, Dr Judith Bryans, said she disagreed with reducing dairy consumption. Between 1995 and today, doorstep delivery has declined from 45% to 3% of the retail milk market. Fresh cream was the fastest growing dairy category with retail volumes up 22.8% (Kantar, 52 w/e 27th Dec 2020). Dairy in the Netherlands. Launched in 2008,… This month we look at how UK dairy exports performed in the first half of the 2020, as well as looking at the progress of the UK’s trade negotiations. However, as supply growth is modest and there are positive signs that demand will recover later in 2021, the outlook for farmers’ incomes looks relatively good. However, it is unlikely to fully return to pre-lockdown levels in 2021, as some consumer wariness will persist after easing. This briefing paper sets out key statistics and current trends for the UK dairy industry: A House of Commons Library Briefing Paper on plastic waste in the UK, including statistics on plastic waste and information on UK Government and devolved Government plans and ambitions to reduce avoidable plastic waste and examples of voluntary initiatives from the plastics industry, environmental groups and retailers. Since the joint HSE/food industry Recipe for Safety initiative commenced in 1990/91, the overall injury rate in food and drink manufacture has reduced by over 55% and each year continues to see fewer injuries reported. However, this year, there will be less panic buying and hopefully the lockdowns will start to ease as the vaccine is rolled out so we predict milk volumes will decline -1% compared to 2020. This grace period will hopefully prevent the teething problems seen on the export side, but may just delay them. With the World Dairy Innovation Awards 2020 now open for entries, FoodBev takes a look at five trends that are shaping the dairy industry today. If you have just purchased a subscription and are seeing this message, please wait a short while for authorisation. This is, I think, applicable to all sectors for food and nutrition, including meat, fruits, and vegetables. The dairy industry has seen a number of scandals in recent times, and firms must take measures to ensure that their supply Challenges and opportunities While the dairy sector is currently dealing with a number of challenges, favourable long term consumer trends and developing technologies provide a number of opportunities. Click the thumbnails below for simple visual explanations as to how the dairy markets have performed, according to the latest data. In February 2020, the farm-gate price was 28.6 ppl. Production was strong at the tail end of 2020, with strong yields from September to the latest data. There are still areas of uncertainty. So far, higher retail demand has offset some, but not all, of the lost foodservice demand, and we would expect this to continue. The additional trade friction will add cost to trading, which will in turn put pressure on prices. For the calendar year 2021 we’re forecasting 12.59bn litres, up 0.5% on 2020*. Dairy Cattle Raising in the UK - Industry … $ 730 July 2020. In retail, yogurt grew by +6% in volume, however this was behind the total market so overall lost share. Download ‘UK Dairy Industry Statistics’ report (730 KB, PDF), UK-EU Trade and Cooperation Agreement: Fisheries. A large part of this was the increase in the trade deficit of yogurt, which grew by 54k tonnes (29%) to reach 237k tonnes in 2020. There has been firm demand from countries that have been able to control the virus and are seeing economic growth. Three are UK co -ops: Arla Foods, First Milk, and United Dairy Farmers; one is a public UK company: Dairy Crest; and one is a German-based private company: Müller Wiseman Dairies. January 21, 2020 UK Company Reports 2020 Barry Wilson. Exporting excesses of these products to the EU is a key part of balancing the UK milk market, and so gives some potential for disruption. Spring weather, and its influence on the flush, will be a key watch point going forward. Of more concern will be an expected increase in on-farm costs. • Milk accounted for 16.9% of total agricultural output in the UK in 2018 and was worth £4.5bn in market prices. However, should the government start easing restrictions from March, as hoped, the increase in foodservice demand could increase processing capability. Our current expectation is for lockdown-type conditions to remain in place for most of Q1, followed by a gradual easing of restrictions, and with a ‘new normal’ restored in H2. Also, encouraging healthy snacks for children such as yogurts and cheese, Although health took a backseat in 2020, we expect it to return to growth this year, so address underlying concerns by communicating a healthy and natural message, 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. Cow’s milk in all types including semi-skimmed, skimmed, etc, other animal milks such as goat’s milk and non-dairy unflavoured plant-ba… This assumes no restrictions on spring production, unlike in 2020. Please Log in to view Dairy Industry Newsletter.. For example, the latest government figures from June 2018 show that UK exports of cheese are up 17% year-on-year, while butter exports rose 20%. alongside the milk utilisation data, gives a comprehensive overview of the UK milk market and is used heavily by the dairy industry, in particular the division of the Agriculture and Horticulture Development Board (AHDB) known as DairyCo (who represent milk producers) and Dairy UK … Feed, fuel and fertiliser prices are expected to increase over the course of 2021. Click below for your Dairy: At A Glance pdf. The increase in hot drinks at home will benefit milk, which we expect to grow +5% on 2019 levels. Oct 2020. 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