Milk production in the UK faces a notable contraction in June

UK milk production contracted notably in June, as the positive momentum observed in early 2026 continued to fade. Although higher milk fat and protein contents partially offset the decline in liquid milk volumes, dairy farmers are facing pressure from sharply lower farmgate milk prices, rising feed costs, and extreme heat, all of which have weighed on margins and cow productivity.Milk output in the United Kingdom totaled 1.32 billion liters in June, marking a decline of 2.3% compared to the previous year. This represented a further acceleration of the annual contraction, which has steadily accelerated from May (-0.9%), offsetting positive developments in the first quarter of 2026.The contraction was partially moderated by the nutritional quality of the milk throughout the year. Milk fat contents increased by 1.1% over the previous year to 4.24% in June, while protein contents grew by 0.6% to 3.4%. As a result, the milk solids (MS) output faced a slighter decline, dropping by 1.4%.The first quarter of the year was marked by an accelerated expansion in milk production, averaging a growth of 3.4% compared to the previous year. In turn, the second quarter shifted to an average decline of 1%. That said, the production throughout the first half of the year remained positive, expanding by 1.1% to 8.11 billion liters compared to the previous year. The elevated nutrient contents supported the MS availability, which increased by 3%, notably outpacing the rate of growth of liquid milk.As a result of the strong milk availability perceived in the region since the previous year, farmgate milk prices in the UK have faced significant pressure, averaging 34.38 pence per liter (ppl). This represents a decline of 20.5% compared to the previous year, despite remaining broadly stable compared to the previous month. The low prices withdraw incentives for farmers to continue expanding their production.According to the Agriculture and Horticulture Development Board (AHDB), the grass growth was broadly stable compared to the previous month in June. Despite the relatively positive grass growth, the UK was marked by unprecedented heat, with the Met Office reporting a provisional June temperature record of 36.1°C. The extreme conditions likely reduced dairy cow productivity through heat stress, lowering feed intake and milk yields while increasing water and cooling requirements.Additionally, the overall prices of feedstuff were marked by notable rises, further pressuring farmers’ margins. A notable example was soybean meal, which faced a 17.2% year-over-year increase to £350.7 per ton in June. Feed wheat prices also increased by 9.3%, while grass land hay increased even further by 107.5%. The simultaneous increase of feeding inputs and the decline of milk prices. As such, the UK faced not only unprecedented weather conditions in June, but farmers also observed economic pressures to their margins deriving from weak milk prices and high feedstuff costs. These compounded factors resulted in an overall decline in milk production that is likely to extend to the following month, given that the AHDB already has already reported declines in the growth of grass for July, limiting the availability of feed for production.