Milk processors start 2026 with further sharp price cuts

British dairy farmers have been hit with a further round of price cuts as the sector battles to control large volumes of milk.

Farmgate milk prices dropped sharply throughout the autumn, leaving many producers in a loss-making position.

However, milk supplies remain high, and in mid-December UK daily milk deliveries were tracking at more than 5% above last year’s levels.

See also: Just 7,000 GB dairy farmers in production as prices slide

Arla has confirmed a 3.5p/litre price cut in January, taking its standard manufacturing litre to 35.73p/litre, the equivalent to a liquid price of 34.25p/litre.

Prices currently paid by the dairy co-operative to producers are 12.81p/litre below the same month last year.

Arla says milk supplies continue on a high level, both globally and within the EU, while retail sales are flat and market prices are adjusting down.

Organic producers supplying Arla will continue to receive 57.98p/litre in January.

Meanwhile, Muller has confirmed a 3p/litre cut to its farmgate milk price into February.

This will take its standard liquid litre to 34.5p/litre, plus a 1p/litre advantage premium.

Richard Collins, agriculture director at Muller, said: “There is still considerable pressure across dairy markets.

“Our daily milk collection volumes are still much higher than this time last year, and we’re seeing further market price reductions.”

Several smaller regional milk processors are now reportedly paying a base price below 30p/litre.