# UK dairy sector economic trends > Live situation record from CLSTR: https://clstr.news/situations/uk-dairy-sector-economic-trends > Updated: 2026-09-09T05:15:00.000Z. Sources: 4. Developments: 2. The UK dairy sector has experienced a period of mixed economic performance and shifting market dynamics during the 2025/26 period. In the first half of 2026, total dairy export volume fell by 11% and total value decreased by 12% to £973 million. This decline was largely attributed to reduced exports of milk, cream, and whey, particularly to the European Union. However, specific segments saw record growth, including milk powder exports, which rose 33.1%, and cheese and curd exports, which increased by 15.4%. On the production side, dairy farmers saw margins rise to £2,708 per cow during the first half of the 2025/26 period, supported by a milk-to-feed price ratio of 1.40, the highest since 2006. Despite these gains, the sector faces upcoming challenges from falling milk prices and rising operational costs, including a 44% increase in senior skilled worker wages over the last five years. Meanwhile, the livestock market remains active, with high-value sales for pedigree bulls reflecting continued demand for quality genetics. ## Timeline ### 2026-09-09: UK dairy sector sees rising margins and strong bull sale prices UK dairy farmers saw record margins of £2,708 per cow in early 2025/26, though rising costs pose risks. Meanwhile, pedigree bull sales in Carlisle reached highs of 7,500gns. 2 sources. https://clstr.news/cluster/uk-dairy-sector-sees-rising-margins-and-strong-bull-sale-prices ### 2026-09-05: UK dairy exports see volume and value decline in H1 2026 UK dairy exports fell 11% in volume and 12% in value during H1 2026, though milk powder and cheese exports reached record highs despite declining milk and cream shipments. 2 sources. https://clstr.news/cluster/uk-dairy-exports-see-volume-and-value-decline-in-h1-2026 --- Cite as: UK dairy sector economic trends. CLSTR, https://clstr.news/situations/uk-dairy-sector-economic-trends