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Winter dairy market outlook now available
Thursday, 9 February 2023
The latest outlook for the UK dairy market is now available, outlining the key challenges as we enter 2023. With demand and supply trends working against each other, we’ve taken a deep dive into how that may affect production, prices and demand to put together our expectations for 2023.
Key points from the outlook:
- GB milk production is forecast to record marginal growth in 2023 in the region of 0.3%. However, there is some risk of a contraction in production if margins deteriorate.
- Despite some recent signs of lower inflation in agricultural input costs, replacement costs through 2023 will remain high, putting pressure on cash flows.
- Global dairy demand is likely to remain challenged by low economic growth, although there is potential for improved import demand from China later in the year.
- Domestic demand is also expected to be impacted by a squeeze on consumer incomes, with all products seeing lower sales.
- Farmgate prices are expected to decline in the first half of 2023, with some potential for this to abate in the second half if inflation subsides and demand recovers.
Follow the links below to read the full story:
Read the full dairy outlook here
Read the economic outlook here
Outlooks for our other sectors are also available on our Agri Market Outlook page.
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