The structure of the GB dairy farming industry – what drives change?

This study will attempt to establish which factors (both economic and socio-economic) are significant influences in whether producers leave the dairy industry or remain and/or expand. It aims to analyse the changes in farm size and farmer behaviour in relation to farm competitiveness both in the UK and abroad in order to identify the drivers of increased scale of production. The project will also determine how the different factors identified affect different sizes and systems of dairy farms within Great Britain. Additionally the project will assess the likely impact of dairy industry developments (eg abolition of quota, expansion in processing capacity, etc.) on the different categories of dairy farms.

The overall purpose of the project is to help clarify the question of ‘cause and effect’ around the development of larger dairy farms and the reduction in numbers of smaller dairy farmers in the industry, while identifying what dairy farmers have to do in the future in order to remain in business