Dairy herd numbers in Scotland have again contracted with the latest statistics for the first six months of 2024, revealing a net decrease of 21 herds, with the total now standing at 773.

Figures from the Scottish Dairy Cattle Association show cow numbers are also down by 398, to 180,250, while the average herd size is up six from January 2024 to 233.

Ayrshire saw the biggest decrease with a net loss of 16 herds. However, in contrast, new dairies have started up in Dumfriesshire, Lanark, and Wigtownshire, proving there is still optimism in coming into the dairy industry.

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Some 73% of the dairy cow population is now officially milk recorded with the average herd size of 246 cows.

Dairy herds being monitored for somatic cell count, pregnancy diagnosis and disease testing continues to increase, with dairy farmers, milk processors, and industry partners all aware of the importance of animal health, and the financial benefits of improving milk quality, fertility and reducing disease.

Janette Mathie, secretary of the SDCA said: “The figures are in line with the national herd figures, recently released by AHDB. The wet winter and spring, lack of labour, and increasing production costs, compared to milk price, have all been contributing factors to dairy herds going out of production.

“There has already been confirmation of herds going out of production in the next few months, due to ill health or retirement,” she added.

Figures from an AHDB survey of the major milk buyers, revealed there are estimated to be 7130 dairy producers in Great Britain – down 440 or 5.8% on the previous year.

Despite falling producer numbers, milk production in GB is only back 0.2% year-on-year.

NFU Scotland Milk committee chair Bruce Mackie, who farms in Aberdeenshire, said: “Increased regulatory pressures, continued inflationary pressure on key inputs, a lack of labour and interest rates still driving up the cost of borrowing, remain the main reasons why many have decided to call it a day.

“Although milk prices are starting to increase, it is too late for some who have suffered from the gap that has grown between the top and bottom of the price league table where, for some, a continued low milk price has squeezed the potential of making any profit.

Analysing the figures, NFUS dairy policy manager Tracey Roan, said: “Whilst it is welcome news that there are new herds entering the dairy sector, my concern is the number of farms that have ceased production.

“Milk buyers, policy makers and retailers need to be aware of the figures as this continued trend of declining numbers of Scottish dairy herds will undoubtedly lead to the industry looking very different in years to come.”