Two of Britain’s biggest dairy processors have announced farmgate milk price cuts for winter, adding fresh pressure on UK dairy farmers already facing tight margins and high input costs.
From 1 December 2025, farmers supplying Muller under its Muller Advantage programme will receive 40p per litre, down 1.5p/litre from the current rate.
Meanwhile, Arla has confirmed its conventional milk price will fall by 2.63p/litre from November 1, bringing it to 42.71p/litre. Its organic price remains unchanged at 57.95p/litre.
Agriculture director at Muller Milk & Ingredients, Richard Collins said the reduction reflected tough global market conditions and higher-than-expected production.
“We’re seeing continued pressure in dairy markets, with market price reductions and daily collection volumes significantly higher than the same period last year,” he said.
“Our approach is to pay a competitive and stable milk price, and we’ll continue to keep a close eye on supply and demand.”
Muller’s Advantage scheme, which rewards farmers for sustainability, herd health and collaboration, remains central to its sourcing strategy.
Arla said the cut reflected 'ample milk availability' and a softening in commodity markets, noting that “negative momentum” was likely to persist for conventional milk in the short term, while organic prices were 'at the moment, less volatile'.
The reductions highlight a difficult winter outlook for the UK dairy sector. Analysts say milk production has rebounded faster than demand across global and EU markets, pushing down farmgate returns.
For many British producers, the latest cuts represent a further squeeze on profitability, with high feed and energy costs continuing to erode margins. Analysts expect milk prices to remain under pressure into early 2026 unless global demand improves or production levels ease.
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