Arla raises milk price while Muller and First Milk stand firm

Dairy markets are beginning to steady — but UK farmers are facing a widening split as milk prices head in different directions.

Arla has increased its conventional milk price by 1.76p per litre for May, taking it to 35.83ppl. The co-op confirmed its headline rate “will rise to 35.83ppl for May 2026”, offering a modest lift as global markets stabilise.

The increase signals firmer returns in the conventional sector following months of volatility.

However, not all processors are following suit. Müller has confirmed it will hold its milk price for June, maintaining current levels under its Advantage scheme despite improving market signals.

First Milk has also opted for stability, confirming its standard manufacturing milk price will remain at 30.75ppl from June 1, including the member premium.

The decision follows a similar move in May and underlines a more cautious approach as processors continue to weigh uncertain market conditions.

Together, the updates highlight a sector still finding its footing — with signs of recovery in some areas, but little movement in others.

While Arla’s rise may point to improving confidence, the decision by Müller and First Milk to hold prices shows the recovery remains uneven, leaving farmers watching closely for clearer direction in the months ahead.