The farmer-owned co-operative has maintained its 39p milk price since October (Photo: First Milk)
First Milk will hold its milk price at 39p per litre for December, offering some stability to dairy farmers as rival processor Freshways prepares to introduce a sharp 7p cut.
The farmer-owned co-operative has confirmed its manufacturing standard litre will remain unchanged from 1 December 2026, including the member premium.
In its announcement, First Milk said: “This means our manufacturing standard litre will remain at 39.00ppl, including the member premium.”
The decision marks the third consecutive month that First Milk has maintained its headline price at 39p per litre, following increases earlier in the autumn.
The co-operative raised its October milk price by 3.15p per litre, taking the manufacturing standard litre from September's 35.85p to 39p.
It then held the rate for November, before confirming the latest freeze for December.
However, First Milk's decision contrasts sharply with Freshways' announcement of a 7p per litre reduction from 1 December, taking its standard milk price down to 31p.
The reduction reverses much of Freshways' autumn increases and highlights the different pricing approaches being taken by processors as the dairy sector heads into winter.
However, the two headline prices are not directly comparable, as First Milk and Freshways use different standard milk specifications, premiums and contract arrangements.
The announcements come against a challenging backdrop for British dairy farmers, with the latest Defra figures showing average UK farmgate milk prices remain 15.6% below last year's levels.
The national average reached 38.45p per litre in September, up 4.8% on August, but the year-on-year decline underlines the continued pressure on dairy incomes.
Meanwhile, the Agriculture and Horticulture Development Board (AHDB) has warned that recent farmgate price increases have not been strongly supported by dairy commodity markets, adding uncertainty to the outlook for processors and suppliers.
For First Milk members, the December hold provides some certainty over their headline manufacturing price, although actual payments will depend on individual supply arrangements and milk composition.
With Freshways implementing a substantial reduction and commodity markets remaining under pressure, dairy farmers will be watching closely to see whether other processors follow with price cuts as winter approaches.