Two of Britain’s biggest dairy processors have announced farmgate milk price reductions for winter, as global milk supplies rise and commodity markets continue to weaken.
From 1 December 2025, farmers supplying Muller under its Muller Advantage programme will receive 40p per litre, a 1.5p/litre cut to the current price.
Meanwhile, Arla has confirmed that its conventional milk price will fall by 2.63p/litre from 1 November, taking its headline rate to 42.71p/litre, while the organic milk price remains unchanged at 57.95p/litre.
Richard Collins, agriculture director at Muller Milk & Ingredients, said the reduction reflected difficult market conditions and higher-than-expected production.
“We’re seeing continued pressure in dairy markets, with market price reductions and daily collection volumes significantly higher than the same period last year,” he said.
“Our approach is to pay a competitive and stable milk price and, as always, we will continue to keep a close eye on supply and demand.”
Muller’s Advantage scheme, which rewards farmers for improving herd health, sustainability and supply chain collaboration, remains a key part of the company’s sourcing strategy.
Arla’s announcement follows a similar pattern, with global and EU milk production both rising while retail sales remain flat.
The cooperative said commodity markets were “adjusting down due to plenty of milk available”, adding that negative momentum was likely to continue for conventional milk in the short term, while organic milk “at the moment, is less volatile.”
The price reductions underline a challenging outlook for the UK dairy sector heading into winter. Analysts say milk production has rebounded faster than demand in several key markets, putting downward pressure on farmgate returns.
For many British dairy farmers, the cuts mark a further squeeze on already tight margins amid high input costs, weaker exports and static retail demand.
Analysts expect milk prices to remain under pressure into early 2026 unless global demand strengthens or production levels ease.
