GB milk production surges to all-time record high in 2025-26

The GB dairy sector set a new production record in the 2025-26 milk year, with deliveries hitting an all-time high of 13.02bn litres according to the AHDB, up by 5% on year-earlier levels.

A favourable milk to feed price ratio last year pushed up milk production on farm, leading to record highs.

This resulted in farmgate milk prices plummeting throughout the winter months as milk processors struggled to keep a lid on excess milk volumes, although markets seem to have stabilised more recently.

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GB daily milk deliveries continue to be high, trending 0.3% up on the year during mid-April at 37.7m litres a day.

Looking ahead, the AHDB forecast production for the 2026-27 milk year to reach a new record high of 13.04bn litres.

AHDB senior dairy analyst Soumya Behera said: “The growth momentum is likely to continue in the first half of the milk year, but will likely slowdown in the second half as we annualise against high levels to end the year mostly stable.”

Ms Behera added: “There is too much milk, not only in the domestic market, but also globally.

“And in such a situation, controlling volumes is necessary to support the market.”

The Dairy Group consultancy projected average cost of production for 2026-27 to surpass 50p/litre for the first time, putting it roughly 15p/litre above estimated milk prices this summer.

Nick Holt-Martyn, principal consultant at the Dairy Group, said: “A revolution is taking place on farm with quotas being introduced by milk buyers fearful of a buoyant spring flush and excess milk with limited value.

“Better a volume quota for the many than a contract cancellation for a very unlucky but still significant few.”

He added: “Farmers have to limit their lowest value litres while not restricting the performance or efficiency of the herd.

“Early culling and drying off decisions will be the most effective at restricting unwanted litres while the rest of the herd operates efficiently.

“A challenging line to tread when the sun is shining, grass growth is accelerating and cows want to milk.”