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.
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