Dairy co-operative First Milk has 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 reduction means the standard manufacturing litre will fall to 35.85ppl, including the member premium.
Mike Smith, farmer director and vice chairman at First Milk, said the move had been a difficult but necessary decision.
“We recognise that this is very disappointing news for all of our members and it was not a decision that was taken lightly,” he said.
“However, given the continued disparity between demand and supply that is negatively impacting the dairy markets and our returns, it is necessary.”
Smith added that the co-operative remained focused on supporting its members and improving efficiency across operations.
“We remain focused on maximising the value of our members’ milk and driving efficiencies within our operations to improve future returns.”
First Milk’s announcement follows similar moves by two of Britain’s largest dairy processors, Muller and Arla, who have both confirmed price cuts heading into winter as global milk supplies rise and commodity values weaken.
From 1 December, farmers supplying Muller under its Müller Advantage programme will receive 40p per litre — a reduction of 1.5ppl from the current price.
Meanwhile, Arla has confirmed its conventional milk price will drop by 2.63ppl from 1 November, bringing its headline rate to 42.71ppl. The organic milk price remains unchanged at 57.95ppl.
The series of cuts underscores the mounting pressure facing dairy processors as supply outpaces demand, squeezing farmgate prices despite producers facing high input costs.
