Dairy Statistics 2014

Dairy statistics
An insiders guide 2014
Contents
Introduction
Farm inputs
UK feed prices
UK fertiliser prices
Oil prices
GB land prices
Rent prices in England and Wales
On-farm data
UK dairy farm numbers
10
Producer numbers by region
11
EU dairy producer numbers
12
UK dairy cow numbers
15
UK average herd size
16
EU dairy cow numbers
17
UK average milk yield
18
TB incidences in cattle in Great Britain
19
Profitability of dairy production systems
20
Milk supply
GB and UK wholesale milk deliveries
22
Milk deliveries by nation (Butterfat adjusted)
24
EU-28 wholesale deliveries
25
World production
27
UK milk flow
29
Milk prices and contracts

UK annual average farmgate price
30
UK monthly average farmgate price
31
UK milk producer league table
33
Market indicators
35
EU annual average farmgate price
37
UK wholesale prices
39
EU wholesale prices
40
World wholesale prices
41
Fonterra auction prices
42
Dairy processing and trade

UK milk utilisation
43
EU dairy product production
44
UK mild Cheddar margins
45
UK mature Cheddar margins
47
EU market management measures
49
UK quota position
51
UK dairy trade balance
52
EU dairy balance sheet
54
World dairy trade
55
Consumer
UK average household consumption
57
Liquid milk retail prices
59
Branded vs private label liquid milk retail prices
60
Liquid milk sales
61
Pasteurised milk
62
Organic and filtered milk sales
63
Modified and UHT milk sales
64
Milk purchases by container type
65
Cheese market
66
Cheddar market
68
EU butter consumption
70
EU liquid milk consumption
71
EU cheese consumption
72
Useful information
Conversion tables
73
UK dairy industry organisations
74
Internet sites for sourcing agricultural information
76
About DairyCo
78
Introduction
This guide has been designed to give answers to the most

frequently asked questions about the dairy industry in the UK
and the world.
It provides data stretching from the farmgate to consumers and,
this snapshot of the dairy industry, is increasingly used by the
media and farmer groups to improve bargaining power and
start informed debates.
In addition to the information provided in this guide, please find
details of web addresses on page 76 which explain the areas
discussed in more detail.
We would like to express our gratitude to the many
individuals and organisations who have provided some of the
statistics found in this publication. This support is gratefully
acknowledged.
To receive free, regular market updates emailed to you every
week, call the MI team on 024 7647 8685 or email datum.
info@dairyco.ahdb.org.uk and ask for the free DairyCo Dairy
Market Weekly.
Further information on these topics can be found at
dairyco.org.uk/market-information
Market Intelligence Team
DairyCo
Farm inputs
UK feed prices
Global grain prices fell in 2013 on increased grain supplies,

however, the smallest UK wheat harvest since 2001 meant UK
wheat prices declined by a lesser extent.
The price of feed wheat fell by 6/tonne (3.1%) and the price
of intensive energy dairy feed rose 23/tonne (8.8%).
Average price (/tonne)
2008
2012
2013
Feed Wheat
143
193
187
Soyameal Argentine
262
351
386
Intensive Energy Dairy

Rations
206
261
284
Note: Prices are from different outlets: Feed Wheat (Delivered), Soyameal (Ex-Store), Intensive
Energy Dairy Rations (On Farm).
Source: FARM BRIEF, AHDB/HGCA.
This data is protected under the various copyright acts. No reproduction in whole or in part is
permitted by any means whether printed, photocopied, sound or visual broadcast without the
express permission of FARM BRIEF.
UK feed prices
Feed Wheat
Soyameal
(Argentine)
Intensive Energy
Dairy Rations
450
400
350
/tonne
300
250
200
150
100
50
0
08
09
10
11
12
13
Source: FARM BRIEF, AHDB/HGCA.
Farm inputs
Average prices for AN (Ammonium Nitrate) fell by 9.5%

between 2012 and 2013 to 277/tonne, due to lower global
Urea prices.
Average price (/tonne)
2008
2012
2013
20.10.10 Blended
bags
379
316
293
Granular Urea (bags)
353
356
308
AN (UK - Bags)
337
306
277
Source: FARM BRIEF.
20.10.10
Blended bags
Granular Urea
(bags)
AN
(UK - bags)
10
12
400
380
360
/tonne
340
320
300
280
260
240
220
200
08
09
11
13
Note: Urea data prior to Jan 2012 is based upon Prilled Urea as Granular prices were not
available.
Source: FARM BRIEF.
This data is protected under the various copyright acts. No reproduction in whole or in part is
permitted by any means whether printed, photocopied, sound or visual broadcast without the
express permission of FARM BRIEF.
Farm inputs
Oil prices
Oil prices fell in 2013 on the previous year to an average price

of $105.87/barrel. However, this price was still up 276.8% on
the average price a decade ago.
The average price in 2013 of 67.74/barrel was 1.9% lower
than 2012.
Average oil price
2003
2012
2013
US$/barrel
28.10
109.45
105.87
/barrel
17.17
69.07
67.74
Source: OPEC. Prices have been converted from US$/barrel using average annual exchange rates.
Oil prices
80
/barrel
70
60
50
40
30
20
10
03 04 05 06 07 08 09 10 11 12 13
Source: OPEC. Prices have been converted from US$/barrel using average annual exchange rates.
Farm inputs
GB land prices
The average price for pasture land in England and Wales

stood at 17,191/hectare in H2-2013, an increase of 661
(4.0%) from H1-2013. The average price for arable land was
21,129/hectare in H2-2013, up 883 on H1-2013 (4.4%).
The highest pasture land price in H2-2013 was 21,313/
hectare in the North West, unchanged on H1-2013. The lowest
price was in Scotland at 6,178/hectare, down 9.1% on H12013 but unchanged on H2-2012.
The highest price for arable land was 22,239/hectare, which
was recorded in both the North West and South East in H22013. The lowest price was in Scotland at 12,355/hectare,
down 18.4% on H1-2013, unchanged on H2-2012.
Land prices for dairy farms
(pasture land) in England and Wales
H2-2013
/ac
/ha
6,957
17,191
Source: RICS Farmland Market Survey.
Land prices England and Wales

per acre
per hectacre
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
08
09
10
11
Note: The above graph shows annual average prices for pasture land.
Source: AHDB/DairyCo, RICS Farmland Market Survey.
12
13
Farm inputs
Rent prices in England

and Wales
Rent levels across England and Wales have been quite
variable between H2-2012 and H2-2013. The average rent
for pasture land in England and Wales (ATA 95) rose by 4/
hectare (1.9%) from 241/hectare in H2-2012 to 245/hectare
in H2-2013. There was, however, a 24/hectare (9.0%) halfyearly decrease between H1-2013 and H2-2013.
The average rent price for arable land in England and Wales
(ATA 95) rose by 14/hectare (3.9%) to 387/hectare between
H2-2012 and H2-2013. Land rented under AHA 86 also
showed a 3.9% increase to 201/hectare.
Land rent levels for dairy farms
(pasture land) in England and Wales
AHA 86
H2-2013
ATA 95
/ac
/ha
/ac
/ha
57
141
99
245
Note: AHA 86 The Agricultural Holdings Act 1986, ATA 95 The Agricultural Tenancies Act 1995.
Source: RICS Farmland Market Survey.
Land rent levels England and Wales

AHA 86
ATA 95
300
/ha
250
200
150
100
50
0
08
09
10
11
12
13
Note: The above graph shows annual average rental prices for pasture land.
AHA 86 The Agricultural Holdings Act 1986. ATA 95 The Agricultural Tenancies Act 1995.
Source: AHDB/DairyCo, RICS Farmland Market Survey.
On-farm data
In June 2013, there were 13,265 dairy farms in the UK 8.8%

(1,284) less than in 2012.
In the past ten years, the number of dairy farms in England and
Wales has fallen by 37.7%. In Scotland, the number of dairy
farms has fallen by 43.6% and in Northern Ireland by 39.6%.
June census
2003
2012
2013
England & Wales
16,977
10,724
10,581
Scotland
1,590
1,163
896
Northern Ireland
4,425
2,662*
2,684*
UK
22,992
14,549
13,265
Note: England and Wales producer number figure for 2012 is a May figure as June data was not
available.
For England and Wales, all premises where milk is produced are referred to as Production
Holdings; this includes holdings with sheep, goats and buffalo.
*Change in methodology in Northern Ireland in 2012 with data revised back to 2006.
Figures for Scotland are for dairy type holdings where dairy farming contributes more than twothirds of the holding standard gross margins up until 2012. As of June 2013, Scotland has changed
its typology which is now based on 11 farm types and uses the cattle tracing scheme resulting in a
significant fall in the number of holdings compared with 2012.
Source: DHI, DARD, SEERAD.

25,000
20,000
15,000
10,000
5,000
0
03
04
10
05 06* 07* 08* 09* 10* 11* 12* 13*
On-farm data
Producer numbers by region
1,163
2013*
896
2003
3,217
2,141
2,120
2003
4,524
2012
2,850
2013
2,780
2003
4,772
2012
3,209
2013
3,182
2003
1,144
2012
620
2013
616
2003
2,909
2012
1,904
2013
1,895
Wales
2012
2013
Scotland
North
Midlands
Wales
1,590
2012
Midlands
2003
South East South West
North
Scotland
Figures are for May unless otherwise stated.
South
East
South West
Note: September figures were used for 2003. Therefore figures do not tally exactly with the farm
numbers table on page 10.
*Figures for Scotland are for dairy type holdings where dairy farming contributes more than twothirds of the holding standard gross margins up until 2012. As of June 2013, Scotland has changed
its typology which is now based on 11 farm types and uses the cattle tracing scheme resulting in a
significant fall in the number of holdings compared with 2012.
11
On-farm data
In 2012/13, there were 922,000 dairy farmers in the 27 EU

member states.
The population of dairy farmers in the EU-15 fell by 20.5%
(91,300 farmers) between 2007/08 and 2012/13
approximately 50 farmers per day left the industry.
Thousand dairy farmers
12
07/08
10/11
11/12
12/13
Austria
58.0
49.9
48.8
46.5
Belgium
13.0
10.7
10.3
9.8
Denmark
5.0
4.2
4.0
3.8
Finland
14.0
11.7
10.9
10.2
France
99.0
83.8
80.3
77.2
Germany
99.0
88.7
83.9
80.8
Greece
6.0
4.3
3.9
3.7
Ireland
21.0
19.0
19.2
18.5
Italy
46.0
40.4
38.8
37.4
Luxembourg
1.0
0.8
0.8
0.8
Netherlands
21.0
19.4
18.9
18.5
Portugal
11.0
8.1
7.5
7.0
Spain
26.0
21.9
20.7
19.6
Sweden
8.0
6.1
5.8
5.4
UK
18.0
15.5
15.0
14.5
EU-15
445.1
384.3
368.6
353.8
Cyprus
0.0
0.2
0.2
0.2
Czech Republic
3.0
2.5
2.4
2.3
Estonia
1.0
1.1
1.0
0.9
Thousand dairy farmers

07/08
10/11
11/12
12/13
Hungary
6.0
5.8
4.7
4.3
Latvia
20.0
12.2
11.6
11.2
Lithuania
69.0
46.6
44.4
41.3
Malta
0.0
0.1
0.1
0.1
Poland
232.0
173.3
162.1
153.0
1.0
0.9
0.9
0.8
Slovakia
Slovenia
10.0
8.9
8.5
8.2
EU-25
789.0
635.7
604.3
576.1
Bulgaria
109.0
18.1
13.8
10.8
Romania
663.0
385.0
368.0
335.0
1,561.1
1,038.8
986.2
922.0
EU-27
Source: Eurostat.
EU-15 dairy producer numbers

2007/08
2012/13
Thousand dairy producers
120
100
80
60
40
20
UK
Au
s
Be tria
lg
De ium
nm
a
Fi rk
nl
an
Fr d
G anc
er e
m
a
G ny
re
e
Ire ce
la
nd
Lu
xe Ita
m
N bo ly
et
he urg
rla
Po nds
rtu
ga
Sp l
Sw ain
ed
en
Source: Eurostat.
13
Change in number of dairy producers per country between

2011/12 and 2012/13 (%)
Malta
Cyprus
Netherlands
Slovakia
Czech Republic
UK
Latvia
Ireland
Italy
Germany
France
Luxembourg
Slovenia
Belgium
Denmark
Austria
Spain
Poland
Finland
Greece
Sweden
Estonia
Lithuania
Portugal
Hungary
Romania
Bulgaria
-25%
Source: Eurostat.
14
-20%
-15%
-10%
-5%
0%
On-farm data
While the number of cows in the UK fell slightly, down 1.7%

in 2013 on 2012, the distribution of cows saw larger losses in
both England and Northern Ireland.
Thousand head
2003
2012
2013
1,435
1,121
1,113
Wales
268
224
223
Scotland
198
163
167
England
Northern Ireland
UK
290
285
280
2,191
1,812
1,782
Note: Dairy cow numbers refer to dairy female cattle aged two years or more with offspring.
England and Wales figures have been sourced through CTS (cattle tracing system), Northern Ireland
data has been sourced through APHIS, Scotland use survey data. CTS/APHIS uses breed of cattle to
identify purpose. Therefore, cannot be used for a direct comparison with previous years.
Source: Defra, DARD, Welsh Government, SEERAD.

2003
2012
2013
2,250
2,000
Thousand head
1,750
1,500
1,250
1,000
750
500
250
0
England
Wales
Scotland
Northern
Ireland
UK
Source: Defra, DARD, Welsh Government, SEERAD.
15
On-farm data
UK average herd size
The percentage reduction in cow numbers was less than the

reduction in herds. Therefore, average herd size continued to
increase between 2012 and 2013.
June census
2003
2012
2013
102
127
128
Wales
91
118
118
Scotland
125
157
185
Northern Ireland
66
107
104
UK
95
125
126
England
Note: Averages have been worked out according to figures found in the dairy farm numbers and
dairy cow numbers tables. Scotland 2013 figures affected by change in holdings methodology.
Source: Defra, DARD, DHI, SEERAD, Welsh Government.
UK average herd size in 2013

200
180
Cow head/herd
160
140
120
100
80
60
40
20
0
England
Wales
Scotland
Source: Defra, DARD, DHI, SEERAD, Welsh Government.
16
Northern
Ireland
UK
On-farm data
EU dairy cow numbers
The EU-15 had 76.9% of dairy cows in the EU-28 in 2013 with
the UK herd representing 7.7% of the total EU-28 dairy cow
population.
Thousand head
2003
2012*
2013*
UK
2,207
1,786
1,817
EU-15
19,217
17,703
18,050
EU-25
23,923
21,555
21,832
EU-27
24,285
23,012
23,314
EU-28
n/a
23,193
23,482
UK% (EU-28)
n/a
7.7%
7.7%
*Provisional.
Note: Eurostat figures for the UK are different from the UK dairy cow numbers on page 15 since
figures are collated from different sources.
Croatia data unavailable for 2003.
Source: Eurostat.
17
On-farm data
In 2013, the UK annual average milk yield rose by 93 litres/

cow. The 2013 yield of 7,535/cow/annum was 1.2% higher
than in 2012 and 13.8% more than in 2003.
Litres/cow/annum
2003
6,621
2010
7,273
2011
7,528
2012
7,442
2013*
7,535
*Provisional.
Source: Defra.
Litres/cow/annum
8,000
7,500
7,000
6,500
*Provisional.
Source: Defra.
18
03 04 05 06 07 08 09 10 11 12 13*
On-farm data
TB incidences in cattle
in Great Britain
The number of cattle being slaughtered due to TB decreased by
13.6% (5,115) between 2012 and 2013.
Number of cattle slaughtered for TB in GB
2003
23,972
2011
34,238
2012*
37,734
2013*
32,619
*Provisional.
Note: Statistics above are for all cattle slaughtered due to TB not just dairy cattle.
Source: Defra.
Number of cattle slaughtered for TB in GB

40,000
35,000
Number of cattle
30,000
25,000
20,000
15,000
10,000
5,000
0
03 04 05 06 07 08 09 10 11 12* 13*
*Provisional.
Source: Defra.
19
On-farm data
Profitability of dairy
production systems
Milkbench+ analysis has, again, identified and analysed three
enterprise types:
Cows at grass. Predominantly grass-based and operating
at lower yield levels
Composite. Maximum use of family labour and a mixed
approach to feeding and housing
High-output cows. Generally housed for more of the year
with more intensive use of major inputs.
DairyCos Milkbench+ Evidence Report 2014 highlights the
following findings:
Due to difficult weather conditions and increasing feed
prices, the average net margin in 2012/13 was negative
and 2.3 pence per litre (ppl) less than in 2011/12 at -0.9
(ppl)
Despite this, the top 25% of producers in all three
enterprise types achieved a positive net margin, with the
top 25% in Cows at grass earning the highest net margin
overall
The top 25% of dairy farms achieved a slightly higher
milk yield, but, importantly, used significantly fewer
resources at cheaper prices, which resulted in lower
production costs and a higher net margin
The difference in performance is much larger between
the top 25% and bottom 25% of producers within each
enterprise type, than it is across farm types
Four drivers explained a minimum of 60% of the
difference in cost of production between the top and
bottom 25% in each of the three enterprise types.
These drivers are:
20
Feed cost
Labour cost
Power and machinery cost
Depreciation.
These drivers are similar to previous year results apart
from the inclusion of depreciation instead of herd
replacement cost.
According to the international dairy network IFCN, UK dairy
farms have, on average, larger herds and slightly lower
milk yields, together with lower production costs and higher
profitability than the average for Western Europe.
Cows at
grass
Composite
Highoutput
cows
Number of farms
120
130
72
Average herd size

(cows)
168
185
266
Total non-forage feed

(kg dry matter per cow
per year)
1,326
2,745
2,853
Yield (litres per cow

per year)
5,890
7,885
8,619
Labour (hours/cow/
year)
36
37
34
Revenue (pence per

litre)
31.5
31.0
31.4
Total variable costs

(pence per litre)
11.4
14.7
14.8
Total fixed costs (pence

per litre)
17.4
14.1
14.0
Total cost of production

(pence per litre)
32.3
32.4
31.9
Net margin (pence per

litre)
-0.8
-1.4
-0.5
Net margin ( per

hectare per year)
-12
-89
-33
Note: Milkbench+ is an Internet-based benchmarking service that allows British dairy farmers to
compare how their enterprise is performing against other dairy farms.
Source: AHDB/DairyCo, analysis of the Milkbench+ 2012/13 sample containing 322 dairy
enterprises.
21
Milk supply
GB and UK wholesale
milk deliveries
In 2013/14, UK milk production was 5.4% (705 million litres)
higher than the previous milk year.
GB milk production rose by 5.3% in 2013/14 versus the
previous milk year.
Northern Ireland milk production also increased in 2013/14
but by a slightly higher percentage of 6.1% (118 million litres).
The strength in production during 2013/14 was encouraged
by favourable weather conditions throughout the year and
positivity in the industry, helped by stronger farmgate milk
prices.
Million litres
GB
UK
03/04 12/13 13/14 03/04 12/13 13/14

Apr
1,098
1,015
932
1,204
1,112
May
1,171
1,048
1,034
1,367
1,252
1,234
Jun
1,087
997
987
1,266
1,186
1,177
Jul
1,061
944
963
1,232
1,116
1,144
Aug
1,028
910
954
1,181
1,063
1,116
Sep
969
864
919
1,101
997
1,063
Oct
989
865
941
1,116
994
1,088
Nov
954
843
920
1,071
974
1,067
Dec
1,002
894
979
1,127
1,039
1,144
Jan
998
897
1,004
1,127
1,059
1,179
Feb
926
824
931
1,054
978
1,099
Mar
1,005
934
1,061
1,152
1,112
1,257
Total
12,288
11,036
12,974
13,680
Note: Figures are subject to rounding.

Source: RPA, DARD.
22
1,271
11,624 14,063
UK wholesale milk deliveries

2003/04
2012/13
2013/14
1,400
1,350
1,300
Million litres
1,250
1,200
1,150
1,100
1,050
1,000
950
900
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Source: RPA.
UK wholesale deliveries by milk years (April-March)

14,500
Million litres
14,000
13,500
13,000
20
0
3/
20 04
04
/
20 05
05
/
20 06
06
/
20 07
07
/
20 08
08
/
20 09
09
/
20 10
10
/
20 11
11
/
20 12
12
/
20 13
13
/1
4
12,500
Source: RPA.
23
Milk supply
Milk deliveries by nation

(Butterfat adjusted)
Between the 2011/12 and 2012/13 milk years, butterfatadjusted milk deliveries fell by an average of 3.5% across all
nations in the UK.
It decreased by 4.7% in England, 3.4% in Wales and 0.7% in
Northern Ireland but increased marginally in Scotland.
Million litres
2010/11
2011/12
2012/13
England
8,639
8,640
8,234
Wales
1,537
1,595
1,540
Scotland
1,268
1,279
1,280
Northern Ireland
UK
1,921
2,004
1,990
13,365
13,518
13,044
Note: Figures are subject to rounding.

Source: RPA.
Butterfat-adjusted milk deliveries by nation

2010/11
2011/12
2012/13
10,000
Million litres
8,000
6,000
4,000
2,000
0
Source: RPA.
24
England
Wales
Scotland
Northern
Ireland
Milk supply
Milk deliveries in the EU-28 were 2.8% higher in 2013/14

than in 2012/13. Eighteen countries increased their production
including Germany, France, UK, Netherlands and Poland.
The UK, which saw its milk deliveries increase 5.4% between
2012/13 and 2013/14, remains the third largest producing
country in the EU.
Thousand tonnes
Germany
2003/04
2012/13
2013/14
27,270
29,706
30,631
France
23,122
24,189
24,677
UK
14,481
13,359
14,086
Netherlands
10,590
11,671
12,344
n/a
9,817
10,092
9,963
9,791
9,721
Poland
Italy
Spain
5,958
5,948
6,008
Ireland
5,288
5,353
5,581
Denmark
4,507
4,914
5,074
Belgium
2,820
3,120
3,534
Austria
2,658
2,947
2,972
Sweden
3,226
2,850
2,890
632
2,431
2,365
Finland
2,411
2,246
2,309
Portugal
1,842
1,825
1,791
Czech Republic
Hungary
1,661
1,398
1,370
Lithuania
1,039
1,356
1,357
Romania
180
870
904
25
Thousand tonnes
2003/04
2012/13
2013/14
Slovakia
961
847
826
Latvia
438
722
755
Estonia
494
673
721
Greece
644
669
643
Slovenia
505
532
518
Bulgaria
n/a
499
494
Luxembourg
258
277
290
Cyprus
149
153
159
Croatia
549
573
506
EU-15
115,038
118,863
122,551
EU-27
121,097
138,161
142,111
EU-28
n/a
138,734
142,617
Note: Figures do not include Malta, however, it is estimated they only produce around 3,000 6,000 tonnes per month which would not substantially affect any percentage changes.
*Croatia joined the EU on 1 July 2013, historic data was available and has been included for
reference.
Source: Eurostat.
26
Milk supply
World production
World milk production continues to increase and reached 603

billion litres in 2012.
Although the EU-27 accounted for nearly a quarter (24.2%) of
the total world milk supply in 2012, this is down from 29.4% a
decade earlier.
The UK is currently the tenth largest milk producer in the world.
Billion litres
2002
2011
2012
World
495.8
589.9
602.5
EU-15
118.8
118.7
118.8
EU-25
140.2
139.9
140.6
EU-27
146.0
145.4
145.9
UK
14.4
13.4
13.5
EU-27%
29.4
24.7
24.2
2.9
2.3
2.2
UK%
Source: Faostat FAO.
27
World milk production

650
Billion litres
600
550
500
450
02 03 04 05 06 07 08 09 10 11 12
Top 10 milk-producing countries in 2012

100
Billion litres
80
60
40
20
Ru
28
US
ce
G
ss
er
ia
m
n
an
Fe
de y
ra
tio
n
Br
az
il
Ch
in
a
In
di
a
Fr
an
an
al
ke
Ze
N
ew
Tu
r
UK
Milk supply
UK milk flow
The UK milk market was approximately 13.6 billion litres in

2013. Milk for liquid consumption accounted for 6.9 billion
litres.
UK milk flow 2013 (million litres) (a)
Dairy herd
production (b)
13,540
Fed to stock/
waste on-farm
115
Total cows milk

production (b)
13,547
Beef herd
production
7
13,431
Raw milk
imports
132
Available for human

consumption (c)
13,563
Raw milk
exports
473
Direct sales
116
Consumed
on farm (c)
22
Delivered
to dairies
12,952
71
45
22
For liquid
consumption (c)
6,885
Used in
manufacture
6,223
6,791
6,179
Dairy wastage
and stock change
-17
(a) Figures are provisional.

(b) Excludes any suckled milk.
(c) Includes 7 million litres of milk produced by the beef herd.
Note: Totals may not agree due to rounding.
Source: Defra.
29
UK annual average
farmgate price
Average UK farmgate prices increased 12.7% compared to
2012, due to increasing wholesale prices and competition
between buyers for milk. Farmgate prices reached record highs
in 2013 as the UK recovered from the loss of production in 2012.
Average price ppl
Year-on-year price
difference ppl
2003
18.03
0.92
2004
18.47
0.44
2005
18.47
0.00
2006
17.95
-0.51
2007
20.67
2.72
2008
25.93
5.25
2009
23.73
-2.20
2010
24.67
0.94
2011
27.36
2.69
2012
28.08
0.72
2013
31.64
3.56
Source: Defra (Including bonus payments).
UK average farmgate price

Average farmgate prices
Year-on-year price diff.
35
30
25
ppl
20
15
10
5
0
-5
30
03
04
05
06
Source: Defra (including bonus payments).
07
08
09
10
11
12
13
UK monthly average
farmgate price
UK farmgate prices were consistently over 30ppl for 2013/14,
apart from May due to seasonal reductions. Increasing
wholesale prices and competition for milk between buyers
drove prices to record levels over the year.
Average price ppl
2003/04
2012/13
2013/14
Apr
16.85
27.84
30.11
May
16.00
26.95
29.98
Jun
16.52
26.13
30.72
Jul
18.22
26.43
31.38
Aug
18.95
26.69
32.08
Sep
19.25
27.62
32.98
Oct
19.60
29.12
33.62
Nov
19.83
30.05
34.55
Dec
19.16
30.14
34.25
Jan
18.77
30.05
33.85
Feb
18.69
30.09
33.93
Mar
18.48
30.09
33.68
Average
18.36
28.43
32.59
Note: The annual average price given is unweighted and, therefore, not comparable with the annual
Defra price.
31
Monthly average farmgate prices

2003/4
2012/13
2013/14
Average price ppl
35
30
25
20
15
Apr May Jun
Jul Aug Sep Oct Nov Dec Jan Feb Mar
32
UK milk producer league table
Prices are based on the DairyCo Standard Litre. This is

based on a 1 million litre/year producer on Every Other Day
Collection with monthly variations for constituents, volume and
hygiene, based on UK averages over the past three milk years.
2013/14 annual average price (ppl) by company
(from our DairyCo standard litre)
34.21
Dairy Crest M&S Profile1
34.12
Dairy Crest M&S Variable
Mller Wiseman Dairies Tesco
33.04
United Dairy Farmers (NI)
32.96
First Milk Tesco
32.90
Parkham Farms
32.85
Mller Wiseman Dairies Sainsburys
32.82
Dairy Crest Sainsburys Profile1
32.73
Dairy Crest Sainsburys Variable1
32.53
Arla Foods Tesco
32.51
Arla Milk Link London Liquid
32.40
Arla Foods Sainsburys
32.40
Arla Milk Link Northern Manufacturing Seasonal
32.32
Paynes Dairies
32.25
Mller Wiseman Dairies Cooperative
32.23
Arla Milk Link Manufacturing Seasonal
32.22
Arla Milk Link Manufacturing A&B
32.01
Lactalis/Caledonian Cheese Profile
31.96
Arla Milk Link Northern Manufacturing A&B
31.89
Dairy Crest cheese Davidstow Profile
31.81
Grahams Dairies
31.73
33
2013/14 annual average price (ppl) by company

(from our DairyCo standard litre)
Dairy Crest cheese Davidstow Variable
31.72
Wensleydale
31.65
Barber A.J & R.G
31.58
Lactalis/Caledonian Cheese Seasonal
31.51
Mller Wiseman Dairies Milk Partnership
31.47
Pattemores Dairy Ingredients
31.47
Wyke Farms
31.44
Meadow Foods Compositional Level
31.44
Meadow Foods Compositional Seasonal
31.38
Lactalis/Caledonian Cheese
31.32
South Caernarfon Creameries
31.25
Dairy Crest Liquid Profile
31.20
Dairy Crest Liquid Variable
31.18
Glanbia Llangefni
31.08
First Milk Liquid A
30.84
First Milk Liquid B (Manufacturing pool)
30.60
Arla Milk Link Llandyrnog Direct Seasonal
30.55
First Milk Highlands & Islands Area
30.55
First Milk Compositional
30.48
Arla Milk Link Llandyrnog Direct A&B
30.35
1 Milk prices listed above will vary according to the amount of milk that is required by each retailer;
additional milk will be paid for at Dairy Crests standard liquid milk contract price; the milk price
above assumes that all litres produced are sold into the dedicated milk pools.
2 Farmers signed up with the Promar costings survey get an additional 0.50ppl.
Note: Prices listed above are exclusive of: Capital Retentions, Administration Charges, Farmer
Group Subscriptions and VAT but are inclusive of: DairyCo Levy and Seasonality.
Only contracts live for the full duration of the 2013/14 milk year are included.
Source: AHDB/DairyCo.
34
Market indicators
In June 2013, AHDB/DairyCo began the process of conducting

a review of the market indicators Actual Milk Price Equivalent
(AMPE) and Milk for Cheese Value Equivalent (MCVE). AHDB/
DairyCo decided to instigate an independent review of the
method of calculation to establish how UK processor costs and
yields have changed, having noted some processing costs
(most notably energy) have increased in recent years. The
results of this change were published in April 2014, alongside
the new AMPE 2014 and MCVE 2014 indicators. The full
report of the review can be found on the DairyCo website
dairyco.org.uk
Strong increases in UK wholesale prices for the majority of
the year allowed for AMPE 2014, MCVE 2014 and cream
income to increase, on average up 37.2%, 17.5% and 32.0%,
respectively, for 2013/14. Weakening markets at the start of
2014 were reflected in the market indicators as levels began to
drop sharply.
Average price (ppl)
3-yr average
2012/13
2013/14
AMPE 2014
29.76
28.06
38.49
MCVE 2014
30.82
31.28
36.75
7.84
6.96
9.19
Cream income
35
Market indicators
AMPE 2014
MCVE 2014
Cream income
45
12
40
10
30
ppl
ppl
35
25
6
20
4
Ap
r
Ju 10
l
O 10
ct
Ja 10
n
Ap 11
r
Ju 11
l
O 11
ct
Ja 11
n
Ap 12
r
Ju 12
l
O 12
ct
Ja 12
n
Ap 13
r
Ju 13
l
O 13
ct
Ja 13
n
1
4
15
The cream income to a liquid processor indicator measures trends in potential returns arising from
the sale of surplus cream and not an absolute value. Actual returns will vary according to butterfat
levels, exact prices for bulk cream and the fat content of actual milk production.
AMPE (Actual Milk Price Equivalent) and MCVE (Milk for Cheese Value Equivalent) provide a
benchmark for the value returned from milk (at the factory gate) when used for a range of dairy
products butter and powders for AMPE and mild Cheddar and other by-products for MCVE.
36
EU annual average
farmgate price
With commodity markets strengthening in 2013 compared with
2012, the EU-27 average price increased by 4.60ppl (16.9%)
to 31.91ppl.
At 31.70ppl, UK dairy producers received 0.21ppl less than the
EU-27 weighted average price.
ppl
2003
2012
2013
Austria
21.18
28.29
32.88
Belgium
19.42
25.24
32.52
Denmark
23.25
28.45
33.75
Finland
25.80
37.56
40.04
France
21.63
26.70
30.29
Germany
21.15
26.78
32.73
Greece
24.52
37.67
38.83
Ireland
19.63
27.00
33.47
Italy
25.05
30.90
33.94
Luxembourg
23.29
26.06
31.93
Netherlands
22.47
28.26
34.48
Portugal
23.43
25.57
29.32
Spain
20.43
25.82
29.99
Sweden
24.08
29.88
34.61
UK
18.13
28.12
31.70
Weighted EU-15 average
21.52
27.79
32.50
Cyprus
26.19
44.02
50.28
Czech Republic
16.97
24.86
28.56
Estonia
13.20
25.13
29.43
Hungary
19.51
24.94
28.27
37
ppl
Latvia
2003
2012
2013
9.63
23.12
26.71
Lithuania
9.92
22.20
27.67
Malta
29.41
40.72
45.79
Poland
11.30
24.03
27.74
Slovenia
20.97
25.20
28.23
Slovakia
15.34
24.65
28.58
Bulgaria
n/a
25.48
29.43
Romania
n/a
22.84
26.21
Weighted EU-27
average
n/a
27.31
31.91
Note: Prices have been converted into ppl using annual average exchange rates.
UK prices are calculated on a different basis to the Defra farmgate price.
Croatia not included due to insufficient data.
Source: DG AGRI-C4, AHDB/DairyCo.
Average EU-15 farmgate prices in 2013 (ppl)

42
40
38
ppl
36
34
32
30
Fi
nl
an
G d
re
S ec
N we e
et d
he en
rla
nd
s
I
De tal
nm y
a
Ire rk
la
Au nd
G stri
er a
m
a
Be ny
Lu lg
xe iu
m m
bo
ur
g
UK
Fr
an
c
Sp e
Po ain
rtu
ga
l
28
Source: DG AGRI-C4, AHDB/DairyCo.
38
UK wholesale prices
Although domestic production recovered well in 2013,

manufacturers needed to rebuild depleted stocks. With limited
supplies, competition between buyers drove prices higher
through the year. UK wholesale prices reached record, or near
record, prices during the summer of 2013.
/tonne
Butter
(Unsalted)
Cream
SMP*
Mild
Cheddar
2003
2,044
974
1,407
1,985
2012
2,531
1,157
2,017
2,906
2013
3,375
1,588
2,667
3,252
*Skimmed Milk Powder.

Source: AHDB/DairyCo, DIN.
UK average wholesale prices

Butter
(unsalted)
Bulk
Cream
SMP*
Mild
Cheddar
4,000
3,500
/tonne
3,000
2,500
2,000
1,500
1,000
500
00 01 02 03 04 05 06 07 08 09 10 11 12 13

Source: AHDB/DairyCo, DIN.
39
EU wholesale prices
Average prices rose significantly in 2013 compared to the

previous year as stocks failed to recover from low levels of
production in 2012. While global milk production recovered
during the year, strong growth in demand added further
upward pressure on wholesale prices.
/tonne*
Dutch
butter
German
SMP**
(food
quality)
Dutch
whey
powder
German
emmental
2003
2,110
1,405
243
2012
2,432
1,931
745
3,223
2013
3,363
2,638
822
3,579
*Monthly prices have been converted from /tonne using average monthly exchange rates and then
averaged out for the year.
**Skimmed Milk Powder.
Source: Dutch Dairy Board/DIN.
EU wholesale prices
Dutch
butter
German SMP
(food quality)
Dutch
whey powder
German
emmental
4,000
3,500
/tonne
3,000
2,500
2,000
1,500
1,000
500
0
00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: Dutch Dairy Board/DIN.
40
World wholesale prices
Milk production was badly affected by adverse weather during

2012 in most major exporting countries. This continued through
into the beginning of 2013, when production began to recover.
Despite this, supplies were not able to keep up with demand,
especially from China, placing further upward pressure on
prices.
/tonne*
Butter
SMP**
WMP***
Cheddar
cheese
2003
1,060
1,073
1,228
1,453
2012
2,259
1,923
2,180
2,393
2013
2,689
2,612
2,870
2,654
*Monthly prices have been converted from US$/tonne using average monthly exchange rates and
then averaged out for the year.
***Whole Milk Powder.
Source: USDA.
World average wholesale prices

Butter
SMP
WMP
Cheddar cheese
3,500
/tonne
3,000
2,500
2,000
1,500
1,000
500
00 01 02 03 04 05 06 07 08 09 10 11 12 13
Source: USDA.
41
The Fonterra auction takes place fortnightly on an online

trading platform called GlobalDairyTrade.
Despite an increase in global milk production during the year,
dairy commodity prices rose through most of 2013/14 as
exportable supplies were not sufficient to meet demand. Prices
spiked early in 2013 as concern over global milk production
hit the market and buyers competed to secure supplies. For the
majority of 2013, prices were maintained at high levels before
supplies recovered sufficiently by the start of 2014 to reduce
pressure on the market.
/tonne
2012/13
2013/14
WMP*
2,027
3,105
AMF**
2,026
3,158
SMP***
2,032
2,873
*Whole Milk Powder.

**Anhydrous Milk Fat.
***Skimmed Milk Powder.
Weighted annual average prices which have been converted from $/tonne using average
exchange rates.
Source: GlobalDairyTrade, AHDB/DairyCo.

AMF
SMP
WMP
4,500
4,000
ppl
3,500
3,000
2,500
2,000
1
c
De
13
Au
Ap
Au
De
12
Ap
Source: GlobalDairyTrade, AHDB/DairyCo.
42
Au
De
11
Ap
c
De
Au
Ap
10
1,500
UK milk utilisation
In 2013/14, just under half (49.6%) of raw milk produced

in the UK went into the production of liquid milk and 26.2%
into cheese compared with 23.1% in 2003/04. The share of
condensed milk and powders fell from 17.7% to 11.1% over this
ten-year period.
Volume (million litres)
2003/4
2012/13
2013/14*
Total milk available
14,339
13,220
13,935
Milk used for liquid
6,761
6,756
6,914
Cheese
3,315
3,618
3,654
Condensed milk and

powders
2,533
1,142
1,546
Exports
405
466
486
Yogurt
226
272
273
Cream
323
263
295
Butter
261
289
304
Other
380
343
429
Stock change and

wastage
134
70
34
*Provisional.
Note: Total milk available = UK milk production + imports.
Milk utilisation includes exports.
Source: Defra.
43
EU dairy product production
In 2013/14, liquid milk made up 57% of the EU-28 dairy

product production, with cheese and fermented products
making up 16% and 14% each, respectively.
Dairy product production is not to be confused with milk
utilisation. It refers to how many tonnes of each end product
have been produced. While milk utilisation shows how much
milk has been used for the manufacture and production of each
product.
Thousand tonnes 2013/14
Drinking milk
Fermented products
7,848
Cheese
8,548
Butter
1,936
SMP*
1,141
WMP**
616
Condensed milk
1,071
Cream
2,611
Note: Cheese data excludes processed cheese.

Data subject to retrospective amendment.
**Whole Milk Powder.
Source: Eurostat.
44
31,154
UK mild Cheddar margins
Processor gross margins on mild Cheddar increased by 0.5ppl

between 2012/13 and 2013/14 and are 0.2ppl lower than in
2003/04.
Retail gross margins on mild Cheddar decreased by 4.8ppl
between 2012/13 and 2013/14 and have increased by
12.4ppl in the past 10 years.
Margins (M) and prices for mild Cheddar
2003/04
ppl
Farmgate
price
18.3
Processor
gross margin
3.3
Processor
selling price
21.7
Retail gross
margin
12.5
Retail price
34.1
2012/13
ppl
28.4
15%
2.6
29.7
60.7
ppl
32.6
9%
31.1
37%
2013/14
3.1
9%
35.7
49%
24.9
41%
60.5
Note: All figures are estimates and subject to rounding.

Source: AHDB/DairyCo Cheddar Supply Chain Margins 2014.
45
Prices and gross margins* for mild Cheddar** 2000 to 2014

Farmgate
milk price
Mild Cheddar
processor
gross margin*
Mild Cheddar
retailer
gross margin*
70
pence per litre
60
50
40
30
20
10
Ap
r
Ap 00
r
Ap 01
r
Ap 02
r
Ap 03
r
Ap 04
r
Ap 05
r
Ap 06
r
Ap 07
r
Ap 08
r
Ap 09
r
Ap 10
r
Ap 11
r
Ap 12
r
Ap 13
r
14
*The gross margin equals the difference between the selling price and buying price.
**Retailer private label, excludes branded products.
Data for the past 2 years has been revised based on the latest figures and may not exactly match
past reports.
46
UK mature Cheddar margins
Processor gross margins on mature Cheddar decreased by

0.3ppl between 2012/13 and 2013/14, although they are
0.6ppl higher than ten years ago. Retail gross margins on
mature Cheddar have decreased by 4.4ppl between 2012/13
and 2013/14 and have decreased by 4.8ppl in the past 10
years.
Margins (M) and prices for mature Cheddar
2003/04
ppl
Farmgate
price
18.3
Processor
gross margin
4.7
Processor
selling price
23.1
Retail gross
margin
31.9
Retail price
55.0
2012/13
ppl
28.4
21%
5.6
31.5
65.6
ppl
32.6
16%
34.0
58%
2013/14
5.3
14%
37.7
48%
27.1
42%
64.8
Note: All figures are estimates and subject to rounding.

47
Prices and gross margins* for mature Cheddar** 2000 to 2014

Farmgate
milk price
Mature Cheddar
processor margin*
Mature Cheddar
retailer margin*
80
70
pence per litre
60
50
40
30
20
10
Ap
r
Ap 00
r
Ap 01
r
Ap 02
r
Ap 03
r
Ap 04
r
Ap 05
r
Ap 06
r
Ap 07
r
Ap 08
r
Ap 09
r
Ap 10
r
Ap 11
r
Ap 12
r
Ap 13
r
14
*The gross margin equals the difference between the selling price and buying price.
**Retailer private label, excludes branded products.
Data for the past 2 years has been revised based on the latest figures and may not exactly match
past reports.
48
EU market management
measures
Milk Marketing Observatory
The European Milk Market Observatory (MMO) was set up in
April 2014 to strengthen the EU Commissions ability to monitor
the dairy market and assist the industry in adapting to life after
quota. The aim of the MMO is to provide the EU dairy sector
with more transparency by means of disseminating market data
and short-term analysis in a timely manner.
Private Storage Aid
The 2013 Private Storage Aid (PSA) scheme closed in August
with 89,615 tonnes of butter placed into storage, 33% less than
2012 and 15% less than 2011. The PSA scheme for butter is
not currently open although remains available to the EU as a
market management tool.
2013
2012
2011
140,000
120,000
Tonnes
100,000
80,000
60,000
40,000
20,000
0
Mar
Apr
May
Jun
Jul
Aug
Source: EU Commission.
49
Common Agricultural Policy (CAP)

From 1 January 2015, the latest CAP reform will come into
effect. Implementation will vary across GB based on decisions
made by each of the devolved governments. For full details,
please check the following websites:
For England:
gov.uk/government/collections/common-agricultural-policyreform
For Scotland:
scotland.gov.uk/Topics/farmingrural/Agriculture/CAP
For Wales:
wales.gov.uk/topics/environmentcountryside/
farmingandcountryside/cap/?lang=en
50
UK quota position
Wales
South East
South West
Quota
1,332
BF Vol
1,280
Diff.
-52
% Diff
-3.9%
Quota
2,104
BF Vol
1,878
Diff.
-226
% Diff
-10.7%
Quota
3,071
BF Vol
2,618
Diff.
-452
% Diff
-14.7%
Quota
3,554
BF Vol
3,080
Diff.
-474
% Diff
-13.3%
Quota
823
BF Vol
657
Diff.
-166
% Diff
-20.1%
Quota
1,710
BF Vol
1,540
Diff.
-170
% Diff
-9.9%
Scotland
North
Midlands
Wales
Midlands
North
Scotland
UK quota position (butterfat adjusted) 2012/13 (million litres)
South
East
South West
Note: These figures are taken from information provided by the RPA which list: Quota (million litres)
by region, Butterfat (BF) adjusted volumes delivered, difference between butterfat adjusted deliveries
and quota in litres and % difference of butterfat adjusted volumes to quota.
Source: RPA.
51
UK dairy trade balance
Lower milk production during the 2012/13 milk year will have
reduced stocks of dairy product. Imports of some products will
have increased to meet domestic consumer demand, while
there will have been limited availability of product for export.
Milk production in the latter part of 2013 allowed for increased
dairy product production, with the production volume of all
products increasing on 2012, with the exception of cheese.
However, exports did not necessarily reflect this as some
product will have been used to build up stocks.
Production
Imports
Exports
Domestic
use
Raw milk (a) (million litres)

2003
14,583
105
399
14,290
2012
13,451
129
466
13,113
2013*
13,546
132
473
13,205
Butter (b) (000 tonnes)

2003
131
118
44
207 (c)
2012
145
104
38
211
2013*
145
105
45
205
Cheese (000 tonnes)

2003
351
316
90
577
2012
397
444
126
715
2013*
388
469
125
732
2003
321
Cream (d) (000 tonnes)

15
114
222
2012
250
31
69
212
2013*
304
22
44
282
2003
216
45
2012
89
2013*
110
Milk powders (e) (000 tonnes)
52
*Provisional.
173
65 (c)
72
89
86 (c)
67
86
91
(a) Raw milk data is aggregated from surveys run by Defra, RERAD and DARD, on the utilisation of
milk by dairies.
(b) Includes butterfat and oil, dehydrated butter and ghee.
(c) Includes stock changes.
(d) Fresh, frozen and sterilised.
(e) Includes full cream powder, whole milk powder, partially skimmed milk powder and skimmed
milk powder.
Note: Butter and cream includes production from the residual fat of low fat milk products.
Butter, cream and cheese production includes farmhouse manufacture.
Source: Defra, AHDB/DairyCo.
UK dairy imports and exports

2003
2012
2013*
500
Thousand tonnes
400
300
200
100
rt
ex
po
rs
im
po
de
rs
de
w
ilk
po
M
ilk
M
po
rt
rt
po
rt
ex
po
m
ea
Cr
Cr
ea
im
ex
se
ee
Ch
se
im
po
po
rt
rt
t
or
xp
Ch
ee
re
tte
ri
tte
Bu
Bu
po
rt
*Provisional.
Source: Defra, AHDB/DairyCo.
53
EU dairy balance sheet
The European Dairy Association has forecast a 34% rise in

EU SMP exports in 2014. Butter exports are also forecast to
increase while cheese exports are expected to decline by
around 1%.
Production
Imports
Exports
Use (a)
Liquid milk (000 tonnes)

2010 EU-27
32,703
173
32,533
2013 EU-28*
32,700
410
32,295
2014 EU-28**
32,800
480
32,325
Butter (000 tonnes)

2010 EU-27
2,010
40
161
1,974
2013 EU-28*
2,110
44
128
2,027
2014 EU-28**
2,180
45
140
2,045
Cheese (000 tonnes)

2010 EU-27
9,237
83
676
8,908
2013 EU-28*
9,595
76
788
9,128
2014 EU-28**
9,725
75
780
9,230
2010 EU-27
1,080
379
800
2013 EU-28*
1,190
410
783
2014 EU-28**
1,350
550
780
SMP*** (000 tonnes)
(a) includes use from stocks.

*Provisional.
**Forecast.
***Skimmed Milk Powder.
Note: These figures ignore trade between EU member states.
Source: EDA.
54
World dairy trade
Exports from North America are forecast to fall in 2014,

according to the USDA, while exports from other regions
are expected to increase. New Zealand Whole Milk Powder
(WMP) exports are still expected to increase as Asian and
African countries maintain a healthy demand for milk powders
while the EUs Skimmed Milk Powder (SMP) trade is also
expected to increase.
Exports by selected countries (000 tonnes)
2010
2013*
2014 (f)
Butter/Butteroil (a) 000 tonnes

N. America
60
98
75
S. America
20
22
24
EU-28
154
120
120
New Zealand
487
530
572
SMP** (b) 000 tonnes

N. America
390
571
550
S. America
20
16
15
EU-28
379
415
475
New Zealand
475
565
585
WMP*** 000 tonnes

N. America
10
12
12
S. America
142
202
224
EU-28
445
370
375
1,064
1,365
1,450
New Zealand
55
2010
2013*
2014 (f)
Cheese (c) 000 tonnes

N. America
188
321
316
S. America
53
49
53
EU-28
676
800
825
New Zealand
425
460
490
(a) Includes AMF equivalent.

(b) Includes Non-fat Dry Milk.
(c) Excludes fresh cheese.
*Provisional.
(f) forecast.
Source: USDA Foreign Agricultural Service.
Exports for selected countries

Butter/
Butteroil (a)
SMP** (b)
WMP***
Cheese (c)
2,500
Thousand tonnes
2,000
1,500
1,000
500
0
2010
*Provisional.
(f) forecast.
Source: USDA Foreign Agricultural Service.
56
2013*
2014 (f)
Consumer
UK average household
consumption
The annual average consumption of liquid milk fell by 8.1%
between 2002 and 2012 while yogurt and fromage frais
consumption increased by 19.2%.
Average purchase
(quantity/head/annum)
Unit
2002
2011
2012
Total liquid milk
85.3
78.3
78.3
Whole milk*
28.9
18.5
15.4
Semi-skimmed milk
47.8
51.1
54.7
8.6
8.7
8.2
Yogurt and fromage frais
8.5
10.4
10.1
Cream
1.0
1.2
1.3
Skimmed milk
Butter
Cheese
Litres
Kg
1.9
2.1
2.1
5.8
6.2
5.9
Expenditure (/head/annum)
Total liquid milk
2002
2011
2012
43.7
50.5
49.0
Whole milk*
15.0
11.5
9.3
Semi-skimmed milk
24.5
33.3
34.4
Skimmed milk
4.1
5.7
5.3
Yogurt and fromage frais
17.4
25.8
27.1
Cream
2.8
4.2
4.4
Butter
5.7
9.6
10.4
Cheese
30.1
41.8
41.9
*Includes full price whole milk and excludes school & welfare milk, includes UHT (Ultra Heat
Treated).
Note: These figures only measure dairy products consumed in the home. It does not include those
consumed out of the home or as an ingredient, eg cheese in a ready meal.
Source: Defra family food survey, AHDB/DairyCo.
57
UK average household consumption

2002
2011
2012
60
Litres/head/annum
50
40
30
20
10
0
Whole
milk*
Semi-skimmed Skimmed Yogurt and

milk
milk
fromage frais
*Includes full price whole milk and excludes school and welfare milk, includes UHT.
Source: Defra family food survey, AHDB/DairyCo.
58
Cream
Consumer
Liquid milk retail prices
In the year ending April 2014, the average price of liquid milk
increased by 0.4% compared to the previous 52-week period.
The average price for doorstep milk increased by 9.0% year-onyear.
ppl for 52-week period ending
Apr-13
Apr-14
% change
Total
61.6
61.8
0.4
Retail
59.3
59.4
0.3
Doorstep
119.3
130.0
9.0
Source: Kantar Worldpanel.
Retail prices for liquid milk

Total market
Total retail
Doorstep
140
ppl
120
100
80
60
Au 12
g
1
O 2
ct
1
De 2
c
1
Fe 2
b
1
Ap 3
r
1
Ju 3
n
Au 13
g
1
O 3
ct
1
De 3
c
1
Fe 3
b
1
Ap 4
r
14
Ju
Ap
12
40
59
Consumer
Branded vs private label

liquid milk retail prices
For the year ending April 2014, private label accounted for
80.4% of the total GB liquid milk market in volume terms.
Branded liquid milk
52-w/e Apr-13
52-w/e Apr-14
898.0
858.2
Expenditure ( million)
666.0
666.4
74.0
78.0
Average price (ppl)
Private label liquid milk

52-w/e Apr-13
52-w/e Apr-14
4,110.7
4,256.2
2,302.8
2,373.8
56.0
56.0
Average price (ppl)
Other liquid milk*

52-w/e Apr-13
52-w/e Apr-14
202.1
179.1
241.4
233.0
Average price (ppl)
119.0
130.0
Note: Branded and Private Label liquid milk is based on Kantar definition.
*The majority (99.96%) of other milk is doorstep delivered milk.
60
Consumer
Liquid milk sales
The total liquid milk market in GB grew to almost 5.3 billion

litres in the year ending April 2014.
Doorstep market share has fallen to 3.4% for the year ending
April 2014.
52-week period ending
Apr-13
Apr-14
% Change
Liquid milk volume sales

5,210.7
5,293.5
1.6%
3,210.2
3,273.1
2.0%
% market share
(volume)
Retail
96.1%
96.6%
Doorstep
3.9%
3.4%
Liquid milk market volume

5,400
Million litres
5,300
5,200
5,100
5,000
ay
Au 1
g 0
N 10
ov
Fe 10
b
M 11
ay
Au 1
g 1
N 11
ov
Fe 11
b
M 12
ay
Au 1
g 2
N 12
ov
Fe 12
b
M 13
ay
Au 1
g 3
N 13
ov
Fe 13
b
1
4
4,900
61
Consumer
Pasteurised milk
Semi-skimmed milk purchases represent almost 62% of the total

GB pasteurised milk market in volume terms for the year ending
April 2014.
Pasteurised milk volume sales
Apr-13
Apr-14
Whole milk
22.6%
22.2%
Semi-skimmed
61.7%
61.8%
Low % fat milk
5.4%
5.5%
Skimmed
Total (million litres)
10.3%
10.5%
4,448.7
4,584.7
Note: % will not add up to 100% as pasteurised includes other types.

62
Consumer
Organic and filtered milk sales
The volume of organic milk sales increased by 4.7% between

April 2013 and April 2014. Over this period, the average price
increased by 3.1% to 86.2ppl.
Organic milk has a 2.7% volume share of the total GB retail
liquid milk market.
Organic milk sales
Apr-13
Apr-14
% Change
134.5
140.8
4.7%
112.4
121.4
7.9%
Average price (ppl)
83.6
86.2
3.1%
Filtered milk sales

The filtered milk market saw volumes fall by 11.0% between
April 2013 and April 2014.
In volume terms, filtered milk accounts for 5.5% of the total GB
retail liquid milk market.
Apr-13
Apr-14
% Change
326.2
290.2
-11.0%
252.2
236.9
-6.1%
77.3
81.6
5.6%
Average price (ppl)

63
Consumer
Modified and UHT milk sales
Modified milk currently accounts for 0.1% of the total GB liquid

milk market in terms of volume.
Modified milk is classified as milk with additives to provide
further nutritional benefits.
Modified milk sales
Apr-13
Apr-14
% Change
4.1
3.9
-4.3%
5.4
5.3
-1.6%
130.8
134.5
2.8%
Average price (ppl)

UHT milk sales

Volume sales of UHT milk fell by 7.9% between April 2013 and
April 2014 to 280.5 million litres. UHT milk sales represented
5.3% of the total GB liquid milk market in volume terms.
The average price of UHT milk increased by 5.5% to 66.9ppl in
April 2014.
Apr-13
Apr-14
% Change
304.4
280.5
-7.9%
193.2
187.7
-2.8%
Average price (ppl)
63.5
66.9
5.5%
64
Consumer
Milk purchases by
container type
Nearly half of milk purchased by consumers in GB was in a
4-pint container in the year ending April 2014.
Milk volume
(million litres)
% share
1 litre
453.1
8.6%
1 pint
303.7
5.7%
2 litre
820.0
15.5%
Container size
2 pint
517.5
9.8%
4 pint
2,641.6
49.9%
6 pint
451.0
8.5%
Other
110.2
2.1%
Total
5,297.1
100.0%
Note: Data for the 52 weeks ending April 2014.

Milk purchases (%) by container size for the year ending

April 2014
6 pint
Other 1 litre
1 pint
2 litre
4 pint
Source: Kantar Worldpanel, AHDB/DairyCo.
2 pint
65
Consumer
Cheese market
GB volume sales in the cheese market increased by 0.3%

between 2013 and 2014.
The average cheese price rose by 2.8% between 2013 and
2014.
Cheese sales
May-12
May-13
May-14
408,703
415,834
417,263
Expenditure (million)
2,626
2,703
2,788
Average price (/kg)
6.43
6.50
6.68
Volume (tonnes)
Volume sales by cheese type (tonnes)

Total Cheddar
May-13
May-14
225,739
228,273
227,058
Hard continental
16,986
18,893
18,848
Soft continental
25,962
26,977
30,438
Territorials ex. blue
32,664
32,329
30,002
Processed
40,609
40,182
39,096
66
May-12
Cheese volumes sales
Thousand tonnes
420
400
380
360
340
2010
2011
2012
2013
2014
Territorials
ex. blue
Processed
Note: Data for the 52 weeks ending May.

Volume sales by cheese type

2012
2013
2014
250
Thousand tonnes
200
150
100
50
0
Total
Cheddar
Hard
Soft
continental continental

Average cheese price (/kg)

May-12
May-13
May-14
Cheddar
6.37
6.44
6.58
Hard continental
9.18
8.86
9.42
Soft continental
6.38
6.29
6.55
Territorials ex.Blue
6.79
6.70
6.95
Processed
6.51
6.66
6.87
67
Consumer
Cheddar market
Volume sales of Cheddar in GB fell by 0.5% from 2013 to

2014.
The average price of Cheddar (all types) increased by 2.2% to
6.58/kg between 2013 and 2014.
Volume sales by cheese type (tonnes)
May-12
May-13
May-14
Mild
39,014
35,826
36,694
Medium
16,244
16,739
7,167
Mature
109,043
106,457
111,833
39,981
44,390
40,900
Vintage
5,015
5,642
4,916
Farmhouse
5,379
4,781
3,665
Other and full flavour
11,062
14,438
11,882
Total Cheddar
225,739
228,273
227,058
Extra mature
68
Cheddar volume sales

2012
2013
2014
120
Thousand tonnes
100
80
60
40
20
vo
u
fla
ho
ll
rm
O
th
er
an
fu
Fa
Ex
t
e
us
ge
ta
ur
ra
at
M
at
Vi
n
e
ur
m
iu
M
ed
M
ild

Source: Kantar Worldpanel, AHDB/DairyCo.
Average price (/kg)

May-12
May-13
May-14
Mild
5.64
5.76
5.81
Medium
6.47
6.37
6.46
Mature
6.41
6.47
6.58
Extra mature
6.70
6.83
7.06
Vintage
7.52
7.73
8.49
Farmhouse
6.64
7.01
7.85
Other and full flavour
6.65
6.10
6.35
Total Cheddar
6.37
6.44
6.58
69
Consumer
EU butter consumption
UK butter consumption, at 3.4kg/capita/annum in 2012, was

less than half that consumed in France.
Kg/capita/annum
2008
2011
2012
EU-27
3.6
3.6
3.7
Denmark
1.8
1.8
1.8
Germany
6.2
6.1
6.2
France
7.5
7.6
7.4
Ireland
2.4
2.4
2.4
Italy
2.4
2.3
2.3
Netherlands
3.3
3.3
3.3
Poland
4.3
4.2
4.1
Spain
0.5
0.5
0.6
UK
2.8
3.1
3.4
Sweden
1.5
1.7
1.8
Note: Figures may include butter produced from other animals.

Source: Dutch Dairy Board.
70
Consumer
EU liquid milk consumption
The UK is one of the highest consuming countries of liquid milk

in the EU-27, with approximately 103 litres consumed/capita/
annum in 2012.
Litres/capita/annum
2008
2011
2012
EU-27
63.0
62.4
62.2
Denmark
87.8
85.9
87.4
Germany
53.4
53.1
53.4
France
57.3
52.8
52.7
Ireland
139.0
135.9
135.9
Italy
52.6
54.3
52.8
Netherlands
50.5
47.6
47.6
Poland
42.7
41.2
41.0
Spain
81.7
81.7
80.8
UK
100.6
104.3
103.1
Sweden
100.4
89.2
89.4
Note: Figures may include milk from other animals.

71
Consumer
EU cheese consumption
Cheese consumption in the UK was around 11kg/capita/annum

in 2012 approximately 6kg less than the EU-27 average.
Kg/capita/annum
2008
2012
EU-27
16.8
17.3
17.2
Denmark
16.4
16.6
16.4
Germany
22.2
24.2
24.3
France
26.9
26.3
26.2
Ireland
6.0
6.7
6.7
Italy
20.6
21.8
20.9
Netherlands
19.3
19.4
19.4
Poland
10.7
11.4
11.4
Spain
7.6
9.5
9.3
UK
11.8
11.0
11.2
Sweden
18.4
19.0
19.7
Note: Figures may include cheese from other animals.

72
2011
Useful information
Conversion tables
Converting volumes/weights
1 litre
= 35.1950 fluid ounces

= 1.75975 pints
= 0.21997 gallons
1 pint
= 20 fluid ounces
= 0.56825 litres
1 kg
= 35.2740 ounces
= 2.20462 pounds
1 tonne
= 1,000 kg
= 2,204.62 pounds
= 0.98421 long ton
Converting volumes/weights of milk

1 litre of whole milk
= 1.02969 kg
1 kg of whole milk
= 0.97116 litres
Note: Due to rounding, there may be instances where individual figures differ slightly from the total
given.
73
Useful information
UK dairy industry
organisations
DairyCo
Agriculture and Horticulture Development Board
Stoneleigh Park
Kenilworth
Warwickshire
CV8 2TL
T: 024 7669 2051
email: info@dairyco.ahdb.org.uk
web: dairyco.org.uk
Dairy UK
93 Baker Street
London
W1U 6QQ
T: 020 7486 7244
F: 020 7487 4734
email: info@dairyuk.org
web: dairyuk.org
The Dairy Council

93 Baker Street
London
W1U 6QQ
T: 020 7467 2629
F: 020 7935 3920
email: info@dairycouncil.org.uk
web: milk.co.uk
74
Dairy Council for Northern Ireland

Shaftesbury House
Edgewater Business Park
Edgewater Road
Belfast
BT3 9JQ
T: 02890 770 113
F: 02890 781 224
email: info@dairycouncil.co.uk
web: dairycouncil.co.uk
National Farmers Union

Agriculture House
Stoneleigh Park
Stoneleigh
Warwickshire
CV8 2TZ
T: 024 7685 8500
F: 024 7685 8501
web: nfuonline.com
Royal Association of British Dairy Farmers

Dairy House
Unit 31
Abbey Park
Stareton
Kenilworth
Warwickshire
CV8 2LY
T: 0845 458 2711
F: 0845 458 2755
email: office@rabdf.co.uk
web: rabdf.co.uk
75
Useful information
Internet sites for sourcing

agricultural information
British Cheese Board
britishcheese.com
Canadian Dairy Information Centre
dairyinfo.gc.ca
Dairy Australia
dairyaustralia.com.au
DairyCo
dairyco.org.uk
dairyco.org.uk/market-information/
Department for Environment, Food and Rural Affairs (Defra)
gov.uk/defra
Department of Agriculture and Rural Development (DARD)
dardni.gov.uk
Dutch Dairy Board
prodzuivel.nl
European Commission Agricultural Directorate
ec.europa.eu/dgs/agriculture/index_en.htm
Eurostat (Statistical Office of the European Union)
epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/
Fonterra Co-operative Group
(incorporating New Zealand Dairy Board)
fonterra.com
Fonterra GlobalDairyTrade
globaldairytrade.info/
Food and Agricultural Organisation (FAO)
fao.org
FAOSTAT Database
faostat.fao.org
Ian Potter Associates
ipaquotas.com
76
International Dairy Federation (IDF)

fil-idf.org
National Farmers Union
nfuonline.com
Organisation for Economic Co-operation and Development
(OECD)
oecd.org
Organisation of Petroleum Exporting Countries (OPEC)
opec.org
Royal Institution of Chartered Surveyors
rics.org/
Rural Payments Agency (RPA)
rpa.gov.uk
Scottish Government Statistics
scotland.gov.uk/Topics/Statistics/Browse/Agriculture-Fisheries
Statistics Canada
statcan.gc.ca
UK National Statistics
statistics.gov.uk/hub
United Dairy Farmers (UDF)
utdni.co.uk
United States Department of Agriculture (USDA)
usda.gov/wps/portal/usdahome
University of Wisconsin Dairy Marketing and Risk Management
Program
future.aae.wisc.edu
Welsh Government
wales.gov.uk/topics/statistics/?lang=en
World Trade Organisation
wto.org
77
Useful information
About DairyCo
DairyCo is a levy-funded, not-for-profit organisation working on

behalf of Britains dairy farmers. Our remit is to solve market
failure in the dairy industry to tackle issues not currently
being dealt with sufficiently to meet the needs of the industry.
Our four main strategies:
The provision of a world-class information service
Helping dairy farmers meet and manage environment
needs and regulatory requirements
Helping dairy farmers increase their profitability through
better business management
Promoting the positive perception of dairy farming with
the general public
DairyCo is a division of the Agriculture and Horticulture
Development Board (AHDB).
DairyCo is funded entirely by milk producers, via a statutory
levy on all milk sold off-farm, at the rate of 0.06p per litre.
This provides an annual income of around 6.9m.
78
The Agriculture and Horticulture Development Board (AHDB) operating through its DairyCo
division, seeks to ensure that the information contained within this document is accurate at the time
of printing. No warranty is given in respect thereof and, to the maximum extent permitted by law,
the Agriculture and Horticulture Development Board accepts no liability for loss, damage or injury
howsoever caused (including that caused by negligence) or suffered directly or indirectly in relation
to information and opinions contained in or omitted from this document
Agriculture and Horticulture Development Board 2014. All rights reserved. No part of this
publication may be reproduced in any material form (including by photocopy or storage in any
medium by electronic means) or any copy or adaptation stored, published or distributed (by
physical, electronic or other means) without the prior permission in writing of the Agriculture and
Horticulture Development Board, other than by reproduction in an unmodified form for the sole
purpose of use as information resource when the Agriculture and Horticulture Development Board
(Or DairyCo) is clearly acknowledged as the source, or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988. All rights reserved.
AHDB (logo) is a registered trademark of the Agriculture and Horticulture Development Board.
79
Agriculture and Horticulture

Development Board
Stoneleigh Park
Kenilworth
Warwickshire
CV8 2TL
T: 024 7669 2051
E: info@dairyco.ahdb.org.uk
dairyco.org.uk
Additional copies of this publication can be ordered from:

dairyco.org.uk or 024 7669 2051

(ask for DairyCo publications)
It can also be downloaded from dairyco.org.uk
Sign up to receive regular dairy market updates by email at

dairyco.org.uk/sign-up

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Dairy Statistics 2014

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Dairy statistics

An insiders guide 2014

Rent prices in England and Wales

Producer numbers by region

EU dairy producer numbers

UK dairy cow numbers

UK average herd size

EU dairy cow numbers

UK average milk yield

TB incidences in cattle in Great Britain

Profitability of dairy production systems

Milk deliveries by nation (Butterfat adjusted)

EU-28 wholesale deliveries

Milk prices and contracts

UK monthly average farmgate price

UK milk producer league table

EU annual average farmgate price

World wholesale prices

Fonterra auction prices

Dairy processing and trade

EU dairy product production

UK mild Cheddar margins

UK mature Cheddar margins

EU market management measures

UK dairy trade balance

EU dairy balance sheet

World dairy trade

Liquid milk retail prices

Branded vs private label liquid milk retail prices

Liquid milk sales

Organic and filtered milk sales

Modified and UHT milk sales

Milk purchases by container type

EU liquid milk consumption

UK dairy industry organisations

Internet sites for sourcing agricultural information

This guide has been designed to give answers to the most

Global grain prices fell in 2013 on increased grain supplies,

Intensive Energy Dairy

Source: FARM BRIEF, AHDB/HGCA.

Average prices for AN (Ammonium Nitrate) fell by 9.5%

Granular Urea (bags)

Source: FARM BRIEF.

Oil prices fell in 2013 on the previous year to an average price

The average price for pasture land in England and Wales

Source: RICS Farmland Market Survey.

Land prices England and Wales

Rent prices in England

Land rent levels England and Wales

UK dairy farm numbers

In June 2013, there were 13,265 dairy farms in the UK 8.8%

England & Wales

Source: DHI, DARD, SEERAD.

UK dairy farm numbers

Source: DHI, DARD, SEERAD.

05 06* 07* 08* 09* 10* 11* 12* 13*

Producer numbers by region

South East South West

Figures are for May unless otherwise stated.

EU dairy producer numbers

In 2012/13, there were 922,000 dairy farmers in the 27 EU

Thousand dairy farmers

EU-15 dairy producer numbers

Thousand dairy producers