Dairy farmers say they’ve been blindsided by looming milk price cuts, prompting NFU Scotland to condemn the move as a blow to confidence and business stability.
The union has warned that the reductions risk destabilising farm businesses at a time when margins are already under extreme pressure.
It said many farmers were notified in October of significant price drops, a development that comes as input costs continue to rise.
With feed, fuel and regulatory expenses climbing, NFU Scotland argues that further cuts could push some producers into acute financial difficulty.
Arla has confirmed that for October 2025 its conventional milk price will decrease by 1.75p per litre, while the organic milk price will remain unchanged.
First Milk has announced it will lower its November milk price by 2p per litre, reducing it to 41.85ppl including the member premium. The co-op said the decision reflected ongoing difficulties in the dairy sector, citing supply and demand imbalances.
Muller has also confirmed a reduction, confirming that suppliers on its Advantage programme will receive 41.50p per litre from November. This marks a fall of 1.25p from September’s price of 42.75p.
Richard Collins, head of agriculture at Muller Milk & Ingredients, said the processor remained focused on supporting farmers but could not ignore wider market realities.
For many dairy farmers, the news has landed like a hammer blow. Bruce Mackie, chair of NFU Scotland's Milk Committee, stressed the sense of betrayal among many.
“We are deeply concerned by the news that many Scottish dairy farmers have been hit with damaging milk price cuts,” he said.
“For some, those cuts are at a time when many had been expecting a long-overdue increase, based on recent contractual changes.
"These farmers had legitimate and well-founded expectations of a price uplift this autumn. Instead, they now face serious financial challenges and disruption to their business plans.”
NFU Scotland highlights a growing imbalance between different parts of the dairy supply chain. While processors and retailers have enjoyed a sustained period of stability, farmers have been left dealing with volatility, mounting costs, and constant regulatory change.
As Mackie warned, “The dairy supply chain depends on farmers being able to plan and invest with confidence. Sudden, unjustified price drops damage that confidence and threaten not just individual businesses, but the resilience of Scotland’s rural economy and food security.”
The union is calling on milk buyers to avoid short-term, reactionary decisions and to reflect the true cost of production in their pricing.
It is also pressing for immediate engagement from processors and retailers, with a clear demand for transparency and fairness across the entire supply chain.
