June 17, 2026
Article
With the first of the March 2026 farming accounts filtering through the overall results are as follows:
Conventional milk prices averaged 41.63 pence per litre for the year to March 2026, according to the Agriculture and Horticulture Development Board (AHDB), resulting in good dairy profits. However, the February 2026 average conventional milk price was 36.59 pence per litre, over 5 pence per litre less than the annual average, a fall of over 12%. Prices fell below 30 pence per litre for some, having a negative impact on current business cash flows. More recently price increases of over 1 pence per litre have been announced, so hopefully this will continue and help cash moving forwards.
Organic milk prices have remained very strong at around 60 pence per litre, so profits have remained very good in this sector.
Beef prices have been over £6 per kg dead weight for prime finished beef and cull cows were not far behind, at over £5 per kg. The national beef herd continues to fall in overall numbers, with more beef coming from calves produced by the dairy herd.
New season lamb prices have reached over £9 per kg dead weight, up £1.50 per kg compared with 2025. The number of animals slaughtered year on year has increased around 5% so demand for lamb remains strong.
Poultry meat demand continues to be strong. A move towards lower stocking densities has caused tight domestic availability and kept markets supported, with many producers also seeing better performing birds as a result of this transition. Egg producers are also doing well, with demand outstripping supply. Feed prices, which account for around 70% of productions costs, have also remained low which has kept the costs down.
Pig prices have changed very little, with slim margins at best. Imports from the EU has kept the demand for UK pork constant and therefore the price down.
Cereals and oilseeds prices have firmed very slightly but with the current price of fertiliser and fuel many are considering what to do if this harvest doesn’t improve on the last few years.
Increased minimum wage and competition for labour from other industries has hindered people recruitment and retention in some cases.
The basic payment scheme (BPS) has effectively disappeared. Those with Sustainable Farming Incentive (SFI) agreements are looking at when these will end to see what options they might have moving forwards, and those that don’t are looking at what they can claim and what it is worth. Capital grants have reopened albeit at a lower level than before and are helpful for the right project.
Cost control, maximising efficient output and improving management all remain a vital part of any successful farming business. Ensuring that you are measuring your own costs of production and output, whilst comparing them to industry data will help you see where improvements can be made.
Embracing change and developing more cost-effective systems will help the business now and into the future.