NFU Scotland demands milk price rise as spot values hit 50p

NFU Scotland has called for urgent milk price rises after spot values climbed to around 50p per litre while some producers were paid as little as 22p.

The union is urging processors to increase returns for August and September, arguing that tightening supplies and stronger market values are not being reflected in farmgate prices.

Milk production across Great Britain has fallen sharply following the recent heatwave and is now at, or below, the five-year average. Further hot weather is forecast for the rest of July, adding to concerns over supply.

Spot milk, which is traded outside longer-term supply contracts, can rise quickly when availability tightens. NFU Scotland said spot prices had reached about 50p per litre.

By contrast, the union estimated the average Scottish milk price to be in the mid-30s pence per litre. It said two producers had contacted it after receiving just 22p and 24p per litre respectively for June milk once transport costs were deducted.

Bruce Mackie, chair of NFU Scotland’s Milk Committee, said: “The market is sending a clear signal. Milk supplies are tightening, spot prices have risen sharply and processors need to reflect those conditions in the prices they pay producers.”

He said low returns were making it harder for farmers to invest and plan for the future.

“It is simply not sustainable for dairy farmers to be receiving little more than 20 pence per litre while input costs are high and still increasing.”

The call comes as new figures point to continued consolidation in Scottish dairying.

Scotland lost a net 10 dairy herds in the first half of 2026, leaving 740. Over the same period, cow numbers edged up to 181,581 and the average herd size rose from 236 to 245 cows.

The figures suggest fewer businesses are managing a slightly larger national herd. NFU Scotland said this reflected continued investment by the producers remaining in the sector.

Mr Mackie said Scotland remained well placed to provide a reliable milk supply despite difficult weather conditions.

He added: “But that investment must start with fair milk prices that give producers the confidence to keep producing.”

NFU Scotland said the widening gap between spot values and some farmgate returns, alongside falling production, strengthened the case for price rises in August and September.