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AGRICULTURE EDITION 45 DELAVAL | I n 1980 there were 3.2 million dairy cows in the UK, in 2010 there were 1.8 million, and the prediction is that this trend will continue. This, coupled with the removal of quotas in 2015 and the growing global urban population, means there will be a real premium on efficiency. The pattern has already been set in the UK, as the average milk yield per cow in 2013 (93 litres per cow) was 13.8% higher than that in 2003. The first half of 2014 saw favourable milk and feed prices. However, the sanctions imposed by Russia, which started in August, and the preparations being made for the 2015 EU Common Agricultural Policy (CAP) reforms have created a much more volatile environment for dairy farmers. This is nowhere more true than in the UK. Dairy companies in countries hit by the sanctions have had to seek new markets for exports, but our analysis tells us that the long-term global supply and demand of dairy products are unlikely to change. The abolition of the milk quota system in Europe in 2015 will enable some EU member states to increase their output and exports. Such an increase in milk production could require capital investments in milking systems, cooling tanks, equipment and software that improve productivity and allow for bigger herds as farms continue to consolidate. This forecast is in line with previous predictions that the average farm size across Europe will increase as the overall number of farms declines. This trend is, in fact, universal across the developed world, and even applies to the UK, where the number of dairy farms has been steadily declining over the past 10 years at a rate of 4% a year. DeLaval, which has British operations in Cardiff, holds as its central belief that food production can be sustainable. Our work is founded on four key pillars: DeLaval Greenhouse gas emissions from dairy farms can be reduced through feeding efficiency DeLaval is a worldwide leader in milking equipment and solutions for dairy farmers, which make sustainable food production possible, and ensure milk quality and animal health. Our solutions are used every day by millions of dairy farmers around the globe. DeLaval was founded more than 130 years ago in Sweden, when the visionary Gustaf de Laval patented the cream separator. Today, DeLaval has 4500 employees and operates in more than 100 markets. DeLaval, alongside Tetra Pak and Sidel, is part of the Tetra Laval Group. ABOUT DELAVAL The average herd size in the UK is 125