July dairy market outlook now online

Friday, 30 July 2021

By Kat Jack

We have just published our latest outlook for the UK dairy market. With the pandemic situation improving, but still ongoing, we take a look at what the rest of 2021 will bring for dairy markets, production and trade.

Key points from the outlook:

  • Domestic milk production is expected to grow slightly for both 2021 and the 2021/22 season, driven by the strong spring flush.
  • The domestic demand balance between retail and foodservice is expected to gradually shift in the direction of pre-pandemic levels, but retail demand will remain elevated this year.
  • Global markets might face some downward pressure, due to growing supplies from key exporters and a potential softening of China’s strong demand.
  • UK trade has been improving since the initial shock of exiting the EU, but continues to be challenged by Rules of Origin and logistical issues.
  • As UK import demand returns, this could add downwards pressure to domestic prices.


Katherine Jack

Analyst - Dairy

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