United Kingdom: Dairy Situation and Outlook

The United Kingdom’s departure from the European Union on December 31, 2020, and the Covid pandemic have both presented challenges and opportunities for the dairy processing sector. These include changes to consumption demand, both domestically and in export markets, and on supply, specifically, terms of trade. In CY2022, more stability in the sector is forecast, but uncertainty remains. The rationalization of the dairy herd is forecast to continue in CY2022, meaning milk production is only forecast to rise marginally.