Dairy sector exodus still gathering pace

THE relentless decline in Scotland's national dairy herd gathered pace last year as more milk producers gave up the unequal struggle in the face of plummeting farm gate milk prices.

Figures from the Scottish Dairy Cattle Association (SDCA) show that 41 herds with a combined total of 4,122 cows ceased production compared with 28 herds with 1,311 cows in 2008.

"The downward trend is accelerating mainly due to the disappointing price for milk and improved returns for alternative enterprises such as beef and sheep," said SDCA secretary, Jack Lawson.

"Farmers are facing large capital outlays to update milking facilities and modernise cattle housing to ensure the best animal welfare standards and simply can't justify the capital expenditure involved with the present financial returns."

Lawson admits that two new large dairy herds, planned before last year's price slump, are due to come into production in 2010.

But he added: "I am also aware of many more dairy farmers who are contemplating ceasing production if the low level of returns continue this year."

The average size of milking herd in Scotland is now 145 cows and for milk recorded herds it is 173, believed to be the largest in Europe. The top dairying county is still Ayrshire with 30,886 cows, closely followed by Dumfries-shire with 29,438 cows.

But the largest herds are in the east and north-east where average herd size is 360 cows.