Milk processors respond with higher prices as supplies tighten

The closing days of August have seen milk price announcements from several major processors, with most pushing through increases as supplies tighten.

Muller Advantage farmers will receive a 2p/litre increase from 1 October, bringing their average milk price to 37p/litre.

See also: Freshways fires 6p/litre milk price rise 

This announcement follows ongoing assessment of market conditions, according to Richard Collins, agriculture director at Muller Milk and Ingredients.

“Maintaining a competitive milk price for our supplying farmers remains a priority, and we will continue to monitor supply and demand closely,” he said.

Muller Advantage is a comprehensive programme which also rewards farmers with a 1p/litre quarterly bonus for delivering herd health and environmental improvements.

Barbers Cheesemakers announced an increase of 2.37p/litre, bringing the price to 40.11p/litre for a 4.2% butterfat and 3.4% protein “manufacturing” litre – the first month above 40p/litre since November 2025.

In addition, it has announced a 2.30p/litre increase for the lower constituent Barbers Standard litre price to 39p/litre.

These increases equate to an 8p/litre jump since March of this year.

“Cheese stocks remain tight, and we are confident that the market fundamentals will deliver high cheese markets to support the milk pricing required,” said Michael Masters, head of milk supply operations at Barbers Cheesemakers.

“We also remain concerned that many ‘milk for cheese’ competitors continue to pay their suppliers at a considerable discount. This cheaper cheese in the marketplace can be unhelpful.”

The increases come as concerns grow around milk production levels, although wholesale cheddar markets have been slow to respond.

The mild cheddar wholesale price experienced a £10/t increase between July and August, according to the AHDB.

Arla’s conventional milk price will increase by 0.89p/litre in September, taking the Arla headline price to 39.04p/litre.

At the same time, the Arla Organic milk price remains unchanged at 56.43p/litre. It says global milk supplies have stabilised at a high level, and while global commodity markets are steady overall, the market for proteins is increasing.

The latest price changes follow last week’s announcement by Freshways of a 6p/litre increase in its milk price from October, taking its standard litre to 38p/litre, including a 1p/litre sustainability bonus.

It is one of the strongest moves yet in a market that has been dominated for much of the year by oversupply and falling farmgate returns.