Britain’s dairy sector is facing mixed signals as Arla reduces its conventional milk price while Muller confirms stability for its Advantage suppliers.
From 1 September 2025, Arla’s conventional milk price will fall by 0.87p per litre, setting the new headline price at 47ppl. The organic price remains unchanged, holding at 57.86ppl.
Arla explained that the adjustment reflects rising milk output across both global and EU markets, coupled with flattening retail sales and a cooling in commodity values after a volatile summer.
Industry analysts have warned that these market conditions are likely to continue pressuring conventional prices into the autumn.
“The outlook is softening from commodity markets and a shift in the supply and demand balance,” Arla said, noting that organic demand remains firm.
In contrast, dairy processor Muller has moved to reassure its suppliers by holding its price into October. Farmers participating in its Advantage programme will continue to receive a farm gate price of 42.75p per litre.
The Advantage scheme is designed to strengthen supply chain collaboration, improve herd health, and support sustainability initiatives.
Sector commentators suggest that Muller’s decision to maintain price levels will be welcomed by producers facing higher feed and input costs heading into the winter.
