Further fall in Scotland's dairy herd

THE reduction in milk producers in Scotland continued in the first six months of the year with another 16 dairy farms including several in the North-east of Scotland quitting the industry

This leaves just 1,035 dairy herds in Scotland, a fraction of the 8,000 figure of just 50 years ago. The latest loss follows the departure of 51 active herds in 2010.

The reduction in the number of herds has been partly offset by existing units increasing their numbers of cows. This trend to larger herds continued, with a new record average herd size of 156 cows, and 15 herds in Scotland now having more than 500 cows.

The in-herd increase was not sufficient to hold overall cow numbers, with the Scottish herd falling by 694 cows to 161,212.

Janette Mathie, secretary of the Scottish Dairy Cattle Association, which maintains the database, said: "Fewer dairy farms and larger herds has been a continuing trend for some years and is likely to continue."

However, Gavin Dick, livestock specialist at the Scottish Agricultural College was in no doubt which sector held the most promise. "You have a relatively rosy future. You are in the most promising sector in the livestock side of farming," he told dairy farmers attending a meeting organised by DairyCo in Brechin yesterday.

His optimism stemmed from the increase in demand for milk products throughout the world, especially from China and south-east Asia. The capacity of these markets to suck in imports of butter, cheese and other milk products was enormous, he stated.

Even although world prices for these products have eased a little in recent weeks and there would be further rises and falls in the volatile market, he believed that overall values of milk products would continue to remain at a high level

Not all of those listening were convinced.

Farmers listed the current farm gate price as not allowing for any future investment or for adequate reward for the skilled labour required in the dairy industry.

Willie Taylor, of Baldoukie, Forfar, said many dairies now ran on the enthusiasm of those who worked in them. Milk processors and supermarkets were benefitting from the skills and hard work of those milking cows, he claimed.

Taylor rejected increased scale of operation as the only way forward as, he said, it could often lead to a loss of efficiency.

Dick admitted that current farm gate prices were not as good as they could be but said that producers should look to where they could trim costs. "It is attention to detail that marks the difference between the profitable and unprofitable producer," he said.