ECIU said the consolidation of dairy farms in recent years had allowed for “economies of scale and mechanisation to increase milk outputs while the herd size reduces”.
Tom Cantillon, a senior analyst at ECIU, said future heatwaves would become progressively harder to recover from, especially as milk was an “unforgiving product in farming” as it cannot be stockpiled.
“The costs don’t stop now that the rain has come,” Cantillon said.
“A second bad year for grass has pushed farmers into their winter forage early, with feed prices to follow.”
Cantillon said farmers needed help to roll out climate resilience measures such as more shade, trees and water.
