The annual Farmer Intentions Survey was carried out by DairyCo, the levy-funded, not-for-profit organisation working on behalf of Britain's dairy farmers. It reveals that:

• 32% of those farmers surveyed are planning to increase production - for the first time since the survey began in 2004, this is expected to lead to an increase in UK milk production;
• 43% are intending to implement a succession plan in the next 10 years (up from 24% in 2009);
• The level of intended investment has risen when compared with last year, with 9% intend to invest over £250,000 in the next five years, three times as many as in 2009 and 2008;
• Overall optimism in the future of the dairy industry has risen to 81% from 72% last year.

There has been a long-term decline in the number of dairy farmers in Britain and while this year's survey reveals that 10% intend to leave the industry within the next two years (1,640 farmers), this will be more than compensated for in the planned increase in production by other farmers.

Ken Boyns, DairyCo sector director says: "This suggests the industry is attracting more entrants and younger generations to join or remain in the industry, which is very encouraging for the long-term future of British dairy farming."

Boyns adds: "Over the past couple of years we have seen a number of retailers develop direct supply relationships with groups of farmers and better milk prices generally across the market. As long as these conditions are maintained, the survey's predictions are likely to become reality."