First Milk to reduce farmgate price by 2p per litre

The UK-based co-op has confirmed that it will reduce its milk price for a standard manufacturing litre
The UK-based co-op has confirmed that it will reduce its milk price for a standard manufacturing litre

First Milk has confirmed a cut to its November 2025 milk price, reducing it by 2 pence per litre to 41.85ppl, including the member premium.

The move reflects ongoing difficulties in the dairy sector, with the co-op citing pressure from supply and demand imbalances.

Mike Smith, farmer director and vice-chairman of the co-operative, said the step was unavoidable to maintain stability.

“Trading conditions remain challenging, with supply and demand imbalances continuing to put pressure on our returns,” he explained.

“To ensure that the milk price we pay remains sustainable and affordable for the long term, this adjustment is now necessary.”

The reduction comes as producers head into the costly winter housing period, when feed and energy demands typically rise.

Acknowledging the disappointment for members, Mr Smith added: “We fully recognise this is disappointing news, particularly as we move into the winter months.

"However, members can be assured that we remain firmly focused on maximising the value of our members’ milk and delivering long-term returns for their businesses.”

The November cut follows earlier reductions across the industry as falling commodity markets and oversupply weigh on farmgate returns.

First Milk, which supplies a range of major dairy buyers, has stressed its commitment to balancing short-term market realities with long-term member value.

In a further sign of the difficult market, Muller has also announced a fall in its farmgate milk price, confirming that suppliers on its Advantage programme will receive 41.50ppl from November 2025.

The cut follows the processor’s September price of 42.75ppl, representing a drop of 1.25ppl. The firm said it remained focused on supporting farmers but could not ignore market realities.