Milk dairies in the UK report reduction in spot prices from oversupply even as dairy demand in Germany strongly favors cheese.
On April 11, 2025, Farmers Weekly reported that farmers in England are finding alternatives for their excess milk.
Some have been opting to sell the surplus at throw away rates to competitor dairies as their traditional supply points overflow.
Spot Milk Prices Match Volumes
In week 2 of April, spot sales were handling prices of as low as 20 pence ($0.26) to the liter.
This is happening a fortnight ahead of mid-spring in May when dairy reaches its maximum supply capacity.
As of March 10, the UK had around 36.8 million liters in milk supply or 4% above the same period in 2024.
If this continues to May, then the 2024-25 market year will have the highest dairy production volume since COVID-19.
According to analyst Annabel Twinberrow for the Agriculture and Horticulture Development Board (AHDB), milk output is 0.7% up for the year.
However, there are still export-oriented farmers enjoying normal market rates due to handsome global offers.
Germany Goes Cheese
Such farmers also abound in Germany, and have been experiencing uptick cheese demand against low butter purchases since late 2024.
This shift in preferences buoyed cheese consumption within German to 25.4 kg per person per year in 2024.
In the same timeline, cheese output rose slightly by 0.08 tonnes to 2.74 million tonnes to bridge demand.
For butter, consumption dipped to 5.3 kg per capita while production also dropped minimally to 473,400 tonnes.
Beforehand, demand had been up and so was the butter price at 2.39 euro ($2.72) per 250 g in October 2024. However, the high rate of the past year has been down slightly since February 2025.
So, Western Europe’s dairy capital is handling uptick cheese usage while the British Isles are courting low spot milk prices. For the bigger picture about milk in both the UK and Germany, read the statistics below.
UK and Germany Milk Statistics
The European Union (EU) of which Germany is a member is the biggest milk producer worldwide at 144.6 million kiloliters (2024). The UK on the other hand ranks 8th globally in total dairy production at 15.6 million kiloliters, as of 2024. Germany individually produces double the UK’s amount at 32.2 billion liters (32.2 million kiloliters). This makes the two nations powerhouses of worldwide raw milk and dairy products.
What is UK’s and Germany’s biggest milk products?
While liquid milk at 6 billion liters annually is the UK’s biggest dairy product, cheese also boasts largesse at 4.8 billion liters. Germany, too, prides in a big cheese industry with an output of 2.4 million kiloliters a year. Milk powder comes second, with annual production averaging 1.5 million kiloliters.
What is the general overview of the dairy industry in the UK?
Dairy products in the UK bring farmers £5.7 billion ($7.46 billion) in wholesale value per year. This amount helps nurture the 10,825 active dairy farmers in the country, each year.
Is dairy big business in Germany?
Although agriculture represents just 1% of the GDP of Germany, milk is nevertheless a major part of the food economy. According to the German Dairy Association (VDM), the dairy sector generates 35.6 billion euro ($40.4 billion), the highest for food sub-sectors.
Who produces and delivers milk in Germany?
Dairy production in Germany is a co-operative effort that incorporates many individual farmers. Around 95% of all deliveries at 30 million kiloliters as well as 90% of all exports come from VDM’s members.