Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has grown at a CAGR of 3.0 % over the past five years, to reach an estimated £6.0bn in 2026.
Trends and Insights
An oversupply of milk is dragging down dairy farmers’ revenue
- According to the NFU, most dairy farmers in the UK were in a good place at the beginning of 2025-26, with average prices close to 50p per litre and favourable milk‑to‑feed ratios supporting healthy profits for farmers. However, things have quickly soured as surging milk production volumes in the UK and the rest of the world are outstripping supply, dragging down prices below production costs. The AHDB forecasts that milk production will reach a near record of 13.05 billion litres by the end of 2025-26, roughly 4.9% higher than the previous year and well ahead of demand growth in domestic and export markets.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to grow over the next five years.
Trends and Insights
The new UK agricultural payment scheme could bode well for dairy farmers
- Direct agricultural payments under the EU Common Agricultural Policy (CAP) used to be a key component for many dairy farmers in the UK. However, with the transition towards a new Environmental Land Management Scheme (ELMS) following Brexit, farmers are now only receiving de-linked CAP payments, which will continue until 2027-28. This means that overall industry support is drying up quickly, increasing dairy farmers’ exposure to volatile milk prices and on-farm performance.
Biggest companies in the Dairy Cattle Raising in the UK
| Company | Market Share (%)
2026 | Revenue (£m)
2026 |
|---|---|---|
AJ and RG Barber Ltd | 86.8 | |
A H Warren Trust Ltd | 12.7 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Dairy cattle sales, Milk for liquid consumption and Milk for dairy product manufacturing. Dairy cattle sales is the largest segment of the Dairy Cattle Raising in the UK.
Trends and Insights
Robust cheese demand supports revenue from milk for processing into dairy products
- Dairy cattle farmers sell raw milk to be processed into cheese, powder, butter, yoghurt, cream and other dairy products. The majority of milk used for processing is turned into cheese. According to AHDB, the cheese category has grown significantly, accounting for 34% of milk used in 2024-25, up from 28% in 2014-15, boosting this segment’s revenue.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Farmers in this industry raise and breed dairy cattle to produce and sell raw milk to processors and manufacturers.
What's included in this industry?
Products and services covered in the Dairy Cattle Raising industry in the United Kingdom include Dairy cattle sales, Milk for liquid consumption, Milk for dairy product manufacturing and Milk for other processing.Companies
Companies covered in the Dairy Cattle Raising industry in the United Kingdom include AJ and RG Barber Ltd and A H Warren Trust Ltd.Purchase this report to view all 2 major companies in this industry.
Related Terms
Related terms covered in the Dairy Cattle Raising industry in the United Kingdom include farm-gate milk price, milk quotas and automatic milking systems.Industry Code
SIC 01.41 - Dairy Cattle Raising in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
An oversupply of milk looms over dairy farmers’ revenue. Soaring milk volumes are dragging down milk prices, threatening industry revenue and profitability at the end of 2025...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consumers shift their preference from traditional milk to alternatives. Due to health concerns and a variety of milk options like soy and almond, liquid milk consumption has ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2026
- Product innovation level
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Northern Ireland offers optimal conditions for dairy farming. The region provides ideal environments for raising robust dairy cattle, as it is blessed with high annual rainfa...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2026
Tables
- Number and share of establishments in each region in 2026
- Number and share of revenue each region accounts for in 2026
- Number and share of wages each region accounts for in 2026
- Number and share of employees in each region in 2026
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
High internal competition hampers price-setting power. As most farms are small, family-run businesses, no player dominates the supply chain or influences the milk price at th...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2021-2026
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major companies in the Dairy Cattle Raising industry. The dairy cattle raising industry is highly fragmented. Smaller dairy cattle farms can compete effectively ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of AJ and RG Barber Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of A H Warren Trust Ltd's performance by revenue, market share and profit margin from 2020 through 2026
Detailed analysis
- Description and key data for AJ and RG Barber Ltd, and factors influencing its performance in the industry
- Description and key data for A H Warren Trust Ltd, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Animal Welfare Act 2006 governs the dairy cattle industry. Ensuring animal owners provide essential needs, like a suitable diet and environment, ensures better living con...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2016-2031)
- Assistance historical data and forecast (2016-2031)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Easing production costs pressures gives farmers some respite. The cost of fertilisers and feed is easing from the historic heights of 2022-23, giving farmers more room to bre...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2020-2024)
- Coverage Ratios (2020-2024)
- Leverage Ratios (2020-2024)
- Operating Ratios (2020-2024)
- Assets (2020-2024)
- Liabilities (2020-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Dairy Cattle Raising industry in the United Kingdom in 2026?
The market size of the Dairy Cattle Raising industry in the United Kingdom is £6.0bn in 2026.
How many businesses are there in the Dairy Cattle Raising industry in the United Kingdom in 2026?
There are 12,559 businesses in the Dairy Cattle Raising industry in the United Kingdom, which has declined at a CAGR of 1.0 % between 2021 and 2026.
How may import tariffs affect the Dairy Cattle Raising industry in the United Kingdom?
The Dairy Cattle Raising industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Dairy Cattle Raising industry in the United Kingdom?
The Dairy Cattle Raising industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Dairy Cattle Raising industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Dairy Cattle Raising industry in the United Kingdom has been growing at a CAGR of 3.0 % between 2021 and 2026.
What is the forecast growth of the Dairy Cattle Raising industry in the United Kingdom over the next 5 years?
Over the next five years, the Dairy Cattle Raising industry in the United Kingdom is expected to grow.
What are the biggest companies in the Dairy Cattle Raising industry in the United Kingdom?
The biggest companies operating in the Dairy Cattle Raising industry in the United Kingdom are AJ and RG Barber Ltd and A H Warren Trust Ltd
What does the Dairy Cattle Raising industry in the United Kingdom include?
Dairy cattle sales and Milk for liquid consumption are part of the Dairy Cattle Raising industry in the United Kingdom.
Which companies have the highest market share in the Dairy Cattle Raising industry in the United Kingdom?
The company holding the most market share in the Dairy Cattle Raising industry in the United Kingdom is AJ and RG Barber Ltd.
How competitive is the Dairy Cattle Raising industry in the United Kingdom?
The level of competition is high and steady in the Dairy Cattle Raising industry in the United Kingdom.
Methodology
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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