UK Dairy Processors Steady on May Milk Prices Amid Market Cautions

Farmgate milk prices are set to remain steady across several major UK processors for May 2025, though signs of market turbulence are prompting caution among industry leaders.

Arla Foods has confirmed that its on-account milk price for British farmer suppliers will be unchanged for the month. The co-operative’s conventional milk price will remain at 48.27p per litre, while organic suppliers will continue to receive 58.01ppl.

The dairy giant said global milk supplies are rising modestly and retail sales are still increasing, albeit more slowly. Commodity markets remain steady, supporting the current pricing, and the short-term outlook is described as stable.

However, Arla issued a warning about future uncertainty, stating: "The turbulence that has hit the world market may cause increasing volatility on the longer term."

First Milk also announced it will hold its milk price at 45.35ppl for May, including the member premium. But the co-operative has signalled a slight decrease ahead, with a 0.5ppl reduction due in June - the first price cut since December 2024.

Commenting on the decision, Mike Smith, farmer director and vice chairman, said: "Dairy market signals are mixed on both price and volume, while our solid business performance has allowed us to maintain stability in our price. As we move into a crucial period for milk production here in the UK, we recognise that future market returns may come under increasing pressure."

Meanwhile, Organic Herd has also held its price following an increase in April, maintaining a competitive 57.68ppl on a standard litre basis for May.

Müller has confirmed that its milk prices will remain unchanged from April at 42.25ppl.

The consistent pricing across the sector offers short-term reassurance to dairy producers, but the cautionary notes from processors suggest the stability may be short-lived.