UK and India dairy sectors see profit squeeze as milk prices fall

British dairy farms are under pressure from volatile milk prices and rising input costs such as fertiliser and fuel, which are squeezing margins. The Agriculture and Horticulture Development Board (AHDB) highlights tools, calculators and guidance to help farmers manage cash flow, optimise herd size and improve efficiency. It also notes that UK dairy exports exceeded £2 billion last year, underscoring strong international demand.

In India, the Aavin Federation and its district unions reported a loss of about Rs 120 crore in 2025‑26, the worst performance since the pandemic. The loss is driven by subsidised milk sales despite higher production costs and a drop in daily milk procurement from roughly 36 lakh litres to 31‑32 lakh litres. The cooperative is forced to reconstitute milk with skimmed milk powder, raising costs above retail prices. Aavin has urged the government to raise procurement and retail prices and plans to increase procurement, promote full‑cream milk and expand value‑added product sales to improve finances.