Dairy farmers supplying First Milk will see a reduction in their milk price from February after the co-operative confirmed a cut linked to ongoing pressure in the dairy market.
First Milk has announced that its milk price will fall by 2p per litre from 1 February 2026, taking the price for a standard manufacturing litre, including the member premium, to 30.25ppl.
The co-operative said the reduction reflects continued challenges around supply and demand, which are weighing on returns across the dairy sector. It acknowledged the impact the decision will have on member businesses operating in a volatile trading environment.
Mike Smith, farmer director and vice chairman of First Milk, said: “This adjustment reflects the ongoing supply and demand imbalance in the dairy market, which continues to impact our overall returns.”
He added: “We fully recognise the pressure these changes place on our members’ farm businesses and remain focused on maximising the value of our members’ milk.”
Mr Smith said the business is also working to improve longer-term performance. “Alongside this, we are driving efficiencies within our operations to help improve returns over the longer term,” he said.
The announcement comes amid wider pressure on milk prices across the sector. Dairy farmers supplying Müller under its Advantage programme are also facing a reduction from February, with the farmgate milk price set at 35.5p per litre following a cut of 3ppl.
With input costs remaining high and market conditions uncertain, farmers continue to warn that milk prices are increasingly falling below the cost of production, intensifying concerns over the long-term sustainability of UK dairy farming.
