Despite the uncertainties of Brexit hanging over British farming, UK dairy farmers continue to expand production in response to good milk prices. In January, UK milk production increased 3% year on year to just under 1.3bn litres. This growth trend has continued into the second month of 2019, with February milk production also up by 3% year on year to just under 1.2bn litres.

This brings milk production for the first two months of 2019 to a cumulative 2.4bn litres, which is 4% ahead of the same period last year. According to the AHDB, milk yields from UK dairy cows are almost 2.5% ahead of last season due to increased concentrate feeding. Dairy cow numbers are falling in the UK, but the increase in yields is more than offsetting this.

On top of this, the relatively mild winter has diminished earlier concerns over feed availability and the AHDB is reporting UK dairy cows are in good condition. The UK research body added that if weather conditions remain normal for the coming year, the UK is likely to see its highest level of milk production in almost 30 years.

Meanwhile, European dairy markets continue to hold steady this week. Spot prices for butter reported to the Dutch Dairy Board increased slightly this week to €4,140/t, which is a very strong price in historical terms. There was no movement on skim markets this week, with skimmed milk powder (SMP) prices flat at €1,920/t. Whole milk powder (WMP) prices continue to trade above €3,000/t.