Arla has announced a fresh cut to its conventional milk price for October 2025, blaming global oversupply and weakening commodity markets.
The price for conventional milk will fall by 1.75p per litre, leaving the headline figure at 45.34ppl. The organic price will remain unchanged at 57.95ppl.
A quarterly currency exchange adjustment adds only a marginal 0.09p per litre to the final payment.
The co-operative said the decision reflects wider market dynamics. Global milk production is rising both internationally and across the EU, while retail sales are flattening.
After a volatile summer, commodity prices are now edging downward as supply continues to outpace demand.
Arla noted that organic markets remain stable, but conventional producers face a tougher outlook. “The supply and demand balance is shifting,” the co-op said, pointing to increased milk availability as a driving factor behind the latest cut.
Industry analysts warn the change underscores the fragility of farmgate prices in a sector where even small fluctuations in supply and demand can trigger sharp corrections.
For farmers already grappling with rising costs, the October adjustment is set to add further pressure to tight margins.
Elsewhere, First Milk has confirmed a cut to its November 2025 milk price, reducing it by 2ppl to 41.85ppl, including the member premium. The move reflects ongoing difficulties in the dairy sector, with the co-op citing supply and demand imbalances.
Muller has also announced a fall in its farmgate milk price, confirming that suppliers on its Advantage programme will receive 41.50p per litre from 1 November 2025. The cut follows the dairy processor’s September price of 42.75p, representing a drop of 1.25p.
Together, the cuts from Arla, First Milk and Muller underline the mounting pressure on Britain’s dairy farmers as they head into winter.
