Arla and Muller Reduce Milk Purchase Prices in the UK Due to Increased Supply

Arla announced that from December 1, the base price for standard milk will be reduced by 3.50 pence per liter to 39.21 pence per liter. The price for organic milk remains unchanged at 57.95 pence per liter. The company noted that the organic segment appears more resilient, with demand and supply "currently balanced."

Simultaneously, Muller also announced a reduction. Farmers supplying milk to the processor and meeting the conditions of the Muller Advantage program will receive 38.5 pence per liter from January 1, 2026, which is 1.5 pence lower than the previous level.

Richard Collins, Director of Agriculture at Muller Milk & Ingredients, stated: "Unfortunately, we cannot ignore the ongoing pressure observed in all dairy markets." He noted, "We are seeing a decline in market prices, and daily milk collection volumes remain significantly higher than last year," adding that the company is "closely monitoring demand and supply."

According to analysts, milk production in several key markets has recovered faster than demand, continuing to exert downward pressure on farm revenues, especially amid high production costs, weakening export dynamics, and stagnation in retail consumption.