Three dairy processors lift milk prices for farmers

Müller, Arla and First Milk have announced increases to their conventional milk prices, with farmers set to receive higher rates in August and September.

Müller will raise its price for qualifying suppliers by 0.5p per litre to 35p per litre from 1 September 2026.

First Milk will increase its standard manufacturing litre by 2ppl from the same date, taking the price to 34.85ppl, including the member premium.

Arla’s conventional UK headline price will rise by 0.88ppl to 38.15ppl in August.

The three prices cover different months, contracts and payment structures, meaning they should not be treated as direct like-for-like comparisons.

Müller’s increase applies to farmers meeting the conditions of its Müller Advantage programme.

Richard Collins, Agriculture Director at Müller Milk & Ingredients, said the rise followed several months in which raw milk collections continued to grow while market prices fell.

“We are pleased to be in a position to increase our farm gate milk price for September, ensuring our supplying farmers continue to receive a competitive price,” he said.

“As always, supply and demand is continuing to be tracked closely.”

Müller Advantage focuses on closer supply-chain collaboration, improvements in herd health and reductions in environmental impact.

First Milk’s 2ppl increase is the largest of the three changes announced.

Its manufacturing standard litre will rise to 34.85ppl from 1 September, with the figure including the co-operative’s member premium.

Arla’s conventional price will increase by 0.88ppl in August, taking its UK headline price to 38.15ppl.

The co-operative said an increase in FarmAhead Incentive points would have a positive impact of 0.03ppl on its on-account price.

Arla said global milk supplies had stabilised at a high level, while commodity prices were broadly steady and protein markets were strengthening.

It described the outlook for the conventional market as stable.

Arla’s UK organic headline price will remain unchanged at 56.43ppl in August.

Organic demand was described as stable, although the continuing imbalance between supply and demand left the outlook uncertain.