The number of dairy farmers in Scotland has fallen below the 1,000 mark for the first time since records began more than a century ago.
Figures published by the Scottish Dairy Cattle Association reveal that the number of dairy herds in Scotland has fallen by 83% since 1903 to 993 from 5,735 previously, with 18 producers exiting the industry in 2013.
Despite the drastic reduction in herd numbers, the number of cattle has remained relatively high only dropping by 27% in the 110-year period, to 163,637 from 223,666. Average herd size has increased by 323% to 165 from 39 previously.
SDCA said the loss of producers was evenly spread throughout the country with six exits in Dumfriesshire, while Wigtownshire herd numbers increased by three.
“From the dairy farmers’ point of view 2013 was a much better year weather wise but also financially with milk prices getting nearer a realistic level and feed being more plentiful than the previous year, otherwise the number of herds giving up would have been much greater,” said SCDA secretary Janette Mathie.
“The trend of higher returns will have to continue to maintain the present overall production.”
NFU Scotland milk policy manager George Jamieson last night described the total falling below the 1,000 mark as a sad reflection on the UK dairy supply chain.
He said the chain had failed to instil confidence in producers that they will receive a reasonable share of the supply chain value.
“The further decline in dairy herds is, on the face of it, disappointing but the decision to give up milking cows is never one taken lightly by any farming business,” said Mr Jamieson.
“That said, the positive figure is that dairy cattle numbers are being maintained in Scotland and new entrants to dairy is a pleasant sign that the prospects for the dairy sector are encouraging.”
He said in recent years returns to producers had not been a big enough incentive to carry on in the sector.
“There are signs and a belief that going forward there may be better times ahead for the whole Scottish dairy sector, but this will be founded on a better and more secure future for those producing the milk,” said Mr Jamieson.
He said both the government’s Scottish dairy review and the dairy voluntary code of practice offered the opportunity to deliver transparency and collaboration in the dairy supply chain.
A Scottish Government spokesperson said last night: “Although the number of dairy holdings continues to fall, a trend experienced across the UK and EU, dairy remains the most profitable agricultural sector in Scotland. Crucially, one characteristic of our dairy sector today is that Scotland now has bigger, more specialised and productive units, leaving us well placed to take advantage of the predicted upturn in worldwide demand for dairy products.
“The Scottish Government is committed to supporting the dairy industry and last week appointed Paul Grant to chair the Scottish Dairy Growth Board, following a review into the sector. The board will look at unlocking the potential for Scotland’s high quality dairy products by exploring opportunities in emerging markets to grow the industry and realise its global potential.
“As part of the review, we will also set up a Scottish Dairy Bureau to provide information, advice and training for dairy farmers, and make sure they have access to the best advice available to improve their business planning and technical efficiency.”
According to levy body DairyCo, the number of dairy farmers in England and Wales was 10,430 at the beginning of January, down 31 on the month before.