Kingshay 2026 Report: record milk yields and challenges of the dairy year

In the dairy year ending in March 2026, cost, price and performance indicators reached new limits against the background of summer drought, winter floods and spikes in fertilizer and fuel prices due to US actions against Iran. The report data covers 1,089 conventional and 88 organic herds.

For conventional Holstein-Friesian herds, average milk yield reached a record 8,848 liters per cow. Margin over purchased feed (MOPF) increased by 3% to £2,708 per cow, driven by the best milk-to-feed price ratio in 20 years (1.40). Average concentrated feed costs fell by 9% (£298/t), while fat and protein levels rose to 4.37% and 3.46% respectively. The average milk price was 41.74p per liter, down 1.12p from the previous year.

Milk from forage volumes grew by 9% to average 2,652 liters per cow, despite a reduction in grazing days across all herd types. Labor costs reached record levels: £18.76 per hour for a senior skilled worker and £14.63 per hour for a 20-year-old worker on minimum wage. Culling rates stood at 28.9%.

Kingshay experts note a significant gap between the average figures and the top 25% of herds in production, health, costs and milk prices. Opportunities for improvement are highlighted in herd health, grazing management, dairy beef production and forage harvesting. Expectations of a strong El Niño weather phenomenon indicate that weather extremes are likely to persist.

Organic herds demonstrated growth in financial and technical efficiency: average milk yield increased by 8.6% (to 6,843 liters per cow), the average milk price rose by 9.2% (to 57.66p per liter), and MOPF per cow increased by 21.7% (to £3,013). The average somatic cell count fell to a record low of 173,000.