The UK dairy market saw growth of 4.9% over the past year, driven primarily from a 4.4% upturn in prices, according to the latest Kantar figures.
Purchases rose by 0.5% in total, although performance was mixed across categories.
Sales of butter and fresh milk contributed most to the £468,000 upturn in total expenditure, with each category growing by around £135,000 in value.
Driving the increase
However, the increased spend on butter was primarily driven by higher prices – up 23.4% – while milk sales saw an increase in both price (up 3.7%) and in sales volumes (up 0.6%).
Cheese also added to the value growth, accounting for 21% of the total increase in expenditure. Similarly, higher average prices were the main driver behind this growth, although this limited volume growth to 0.7% year on year.
The latest daily deliveries data for England, Scotland and Wales shows that GB milk production peaked on May 19 with a seven-day rolling average production of 36.6 million litres.
Actual figures put the peak as between May 17-20, depending on how you account for every other day collection.
By May 19, overall production was running 0.2% behind last year, having caught up from being 2% behind for much of April.
Although this peak was on the late side, it was not as late as the peaks recorded in 2010 and 2012.
Meanwhile, Royal Veterinary College (RVC) statistics show that heifers, which calf at two-year-old give on average 25,000L of milk throughout their first five years, while those calving two months later give just 20,400L.
The figures also show that longevity is increased; heifers calving at 24 months have a 62% chance of still being alive at five years old, while those which calf at 26 months only have a 41% chance of surviving past their fifth year.
At 24 months, the cost to rear a heifer is approximately £1,500. But that rises to £1,800 if animals calve at 26 months, and can be over £3000 if they don’t have their first calf until 32 months.
