2021 Dairy market outlook now online

Friday, 29 January 2021

By Kat Jack

We have just published our latest outlook for the UK dairy market. With the continual uncertainty around coronavirus and a new relationship with the EU, we take a look at what 2021 will bring for dairy markets, production and farm input costs.

Key points from the outlook:

  • Domestic milk production is expected to grow slightly in 2021, as it starts the year with strong yield growth. This assumes no restrictions on spring production, unlike in 2020.
  • UK demand dynamics are still uncertain, but a successful vaccination program should enable a return to relative normality by late 2021.
  • Demand at a global level is mixed, depending on each country’s pandemic management and economic recovery.
  • 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 EU deal is positive news for UK dairy trade, but trade friction will still have an impact, particularly on short-shelf-life products.

 

Follow the links below to read the full story:

Read the full dairy short-term outlook here

Read the long-term dairy outlook here

Find our outlooks for other sectors, including inputs, here

On the go? try these:

Watch our outlook video here

Listen to the podcast here

Image of staff member Katherine Jack

Katherine Jack

Analyst - Dairy

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