Robust milk markets offer optimism for dairy producers

UK wholesale markets have been performing well, with butter, cream and cheddar prices all up on the year, adding some support to the domestic dairy sector.

Dairy farmers supplying Muller will receive a higher milk price in September amid strengthening market conditions.

However, most milk processors have opted for further milk price holds throughout the summer months, maintaining current rates in August and September.

See also: Domestic dairy faces growing competition from imports

After several years of price volatility, 2025 has brought some much-needed stability to dairy markets, with farmgate prices having held steady for much of the year.

Muller has confirmed it will increase its farmgate price by 0.5p/litre to 42.75p/litre for a standard liquid litre.

Richard Collins, head of agriculture at Muller, said: “We are pleased to be in a position to increase our farmgate milk price for September, ensuring our supplying farmers continue to receive a stable and competitive price, helping them to plan for the future of their business.

“As always, we will continue to monitor supply and demand.”

Several smaller processors have also indicated potential price rises for the coming months.

Further price holds

Dairy co-operative First Milk has held its milk price again at 44.85p/litre into September for a standard manufacturing litre, including its member premium.

Arla has committed to a further price hold into August at 47.87p/litre for conventional producers and 57.86p/litre for organic.

The co-operative said the market and outlook were both firm with retail sales continuing to grow.

Barbers Cheesemakers has pledged to hold its milk price at 45.08p/litre for September.