No profit in dairy sector before basic payments

According to consultants Andersons dairy budgets for the 2020/21 milk year show no profit before BPS payments: Dairy budgets

The main factor is a lower milk price, estimated to be down by 0.8p a litre. The firm sees the next decade as one of profound change as subsidies are withdrawn. Milk producers will find accessing the ELMS scheme more challenging than other sectors. Farmers in the sector are least likely to have joined existing stewardship schemes.

Dairy farming in the traditional milk production region of Wisconsin in the United States is also facing big challenges, with farms either going industrial or going bust. The rising cost of labour is one factor: Business has gone sour in America's dairy capital

UK consumers drink just half the milk they did in 1974. Research by market analyst Kantar found that the decline can be linked to reduced consumption of foods such as tea, coffee and breakfast cereals. The uptake of plant-based alternatives is also contributing, although these products still account for 4.6 per cent of the volume of all milk sold in the UK.