UK dairy sector sees rising margins and strong bull sale prices

The UK dairy sector is experiencing a period of fluctuating profitability and strong livestock market activity. According to the Kingshay Dairy Costings Focus Report, dairy farmers saw margins rise to £2,708 per cow during the first half of the 2025/26 period. This increase was driven by higher milk prices and lower concentrate costs, resulting in a milk-to-feed price ratio of 1.40, the highest since 2006.

However, the second half of the year presents challenges due to falling milk prices and rising input costs, including labor and machinery. The cost of a senior skilled worker has risen 44% over the last five years. Additionally, fluctuations in red diesel and ammonium nitrate prices have impacted operational expenses.

In the livestock market, the annual Borderway Mart bull sale in Carlisle saw significant activity. A pedigree Holstein/Friesian bull, Warnelview R Impact, was named Champion Bull and achieved a top price of 7,500gns. The Warnelview herd also saw multiple high-value sales, reflecting continued demand for quality dairy genetics despite the increased use of artificial insemination in the industry.