IN the latest six-monthly statistics to July 1, published by the Scottish Dairy Cattle Association (SDCA), while the total number of dairy herds in Scotland has remained static at 974, cow numbers have decreased by 1,803 to 174,032 - still the second highest number since 1997.

Although the total herds are the same, a number have ceased production due to the low milk price and retirements, but an equal number have started up due to long term planning and investment.

Following the establishment of the Scottish Milk Marketing Board in 1933 dairy cow numbers in Scotland peaked in 1953 at 374,900. Back then there were 8,150 herds with an average of 46 cows.

Today there are just under 12 per cent of herds being milked compared to the peak in 1953, while the number of cows has more than halved - although average herd size has risen to 179.

Commenting on the figures Janette Mathie, secretary of the SDCA said: "The latest six-month figures are a surprise as most thought herd numbers and also cows would be much lower. However, we know of several herds that will be dispersed before the end of the year and that may make a difference by the end of December.

"Full marks to our dairy farmers who are maintaining the Scottish dairy business through these very tough financial times."

NFU Scotland milk policy manager George Jamieson said: "Scottish dairy farmers continue to demonstrate huge resilience in the face of the most extreme market conditions.

"We know that many Scottish dairy farmers are seriously challenged financially, and that there will be casualties. For a dairy farmer to give up generations of effort and commitment is one of the hardest decisions they will ever make.

"For some it will be the correct decision, but for most there is a future in dairy and they want to be part of it. No one should doubt the commitment, skills and resourcefulness of dairy farmers and their staff, but many are near breaking point, because, even with the small uplift in prices seen recently, the majority are continuing to lose significant amounts of money from producing milk."

Mr Jamieson went on: "The fact that dairy farm numbers in Scotland have remained constant should not cloud the potential for fall out later this year unless there are positive signs for farmers to continue to shore up finances and keep milking cows."

While the situation in Scotland is relatively stable, figures released by AHDB Dairy reveal that producer numbers in England and Wales have fallen by more than 1,000 in the last three years to a new low of 9,538.