MP's bill demands fair milk prices and clear dairy labelling

Falling milk prices is prompting fresh calls for fairer contracts and stronger protections
Falling milk prices is prompting fresh calls for fairer contracts and stronger protections

A Private Members’ Bill before parliament is demanding tougher protections for UK dairy producers — from fair pricing and transparent labelling to safeguards in future trade deals.

The legislation, introduced this week by Liberal Democrat MP Sarah Dyke, seeks to ensure that the government considers the impact on British dairy farmers in any future international trade negotiations.

It also calls for measures to promote fair dealing between farmers, processors and retailers, alongside stronger contractual protections to prevent exploitation in the supply chain.

The bill follows growing alarm over falling milk prices and the long-term decline of Britain’s dairy sector.

Figures from the House of Commons Library, commissioned by the Liberal Democrats, show the number of UK dairy farms has fallen by more than 30% since 2015, from 12,643 to 8,738, while the national dairy herd has dropped by nearly 90,000 cows.

At the same time, prices continue to slide. Dairy co-operative Arla Foods reported its November milk price fell by 2.63p/litre from 1 November, marking the third monthly reduction in a row.

Dairy co-operative First Milk has also confirmed it will cut its milk price by 6p per litre from 1 December 2025, citing weak global demand and oversupply across dairy markets. The move has deepened concern among producers already facing significant financial pressure.

Dyke said “the one-sided contracts that allow buyers to cut prices in this way are unacceptable and unsustainable.” She warned that price volatility, rising input costs and uncertainty over future farm support were leaving producers “under enormous pressure.”

Dyke also raised concerns that recent trade agreements have opened the door to cheaper imports that fail to meet UK production standards.

“A major dairy farmer in my constituency has commented that recent trade deals for the UK and EU mean that we are being flooded with US butter and New Zealand butter and cheddar,” she said.

She argued that proper labelling would allow shoppers to “support hardworking local farming families” and make informed decisions about where their food comes from.

Calling dairy farming “a backbone of the UK’s domestic food production,” Dyke urged ministers to do more to secure the industry’s future. “It’s imperative that the Government supports, stands up for and protects this vital industry,” she said.

She also warned that changes to inheritance tax rules could further threaten family-run farms, adding: “I’m calling on the government to make these essential provisions to safeguard our farming industry and protect our hardworking farmers.”