Dairy farmers hit by further milk price cuts from Muller

Müller has become the latest major processor to cut its milk price, adding to growing concern among dairy farmers as weakening markets continue to squeeze returns.

Suppliers meeting the criteria for the Müller Advantage programme will be paid 34.5ppl from 1 March 2026. This marks a reduction of 1ppl on the previous price.

The move mirrors recent cuts announced elsewhere in the sector, underlining the depth of the current downturn.

Richard Collins, agriculture director at Müller Milk & Ingredients, said there was “significant pressure across dairy markets”.

He said milk supply remained elevated, adding: “Milk collections remain well above the levels we saw at this point last year, and market prices have continued to reduce.”

Müller said it would continue to monitor market conditions closely. Collins said: “We are continuing to track supply and demand developments carefully.”

The announcement follows a similar move by First Milk, as pressure continues to build across the dairy industry.

Dairy farmers supplying the co-operative will see a cut from 1 February, after First Milk confirmed a reduction linked to ongoing market weakness.

From 1 February 2026, First Milk’s milk price will fall by 2ppl, taking the price for a standard manufacturing litre, including the member premium, to 30.25ppl.

Analysts warn that farmgate prices are unlikely to recover in the short term.

New analysis from levy organisation AHDB suggests milk prices are set to remain under pressure through the first half of 2026, driven by continued oversupply.

AHDB said the sector entered the year facing a supply-driven downturn, with milk volumes running well ahead of demand in both UK and global markets.

UK production rose sharply through the autumn, with October deliveries almost 7% higher than a year earlier. Volumes remained around 3–5% up through to early January, feeding quickly into falling wholesale prices.