Liquid milk production consumes the increase in supply

Published 19 May 15

In the first quarter of 2015 raw milk production increased by 21 million litres compared to the same period last year. This is one of the factors behind the increase in the manufacture of liquid milk, up 2.2% compared to the previous year.  In addition, production of dairy products fell by 12,000 tonnes year on year. This has resulted in the proportion of total UK milk used to produce liquid milk rising from 48% to 50%.

Cheese and butter production accounted for the majority of the decrease in manufacturing output in the first three months of 2015 compared to the same period in 2014, declining by almost 13,800 tonnes. Milk powder production partially offset some of the decline by increasing 12.4% over the same period.

A greater proportion of UK milk going into production of liquid milk products may be seen as a benefit for the UK dairy industry. This is because liquid milk market is less exposed to global price fluctuations than the market for dairy products such as cheese, butter and powders.

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