First Milk Announces Reduction in Milk Price Due to Market Challenges

First Milk Limited, a prominent dairy cooperative in the UK, has stated that its milk price for a standard manufacturing litre will decrease by 3.6 pence, setting the new price at 32.25 pence per litre, effective fr om January 1, 2026. This includes the member premium, a component that enhances the price paid to cooperative members.

Mike Smith, farmer director and vice chairman of First Milk, commented on the price adjustment, emphasizing the ongoing difficulties faced by the industry. He highlighted that both UK and global milk production levels remain at record highs, contributing to a persistent supply and demand imbalance. This imbalance has led to reduced overall returns for the company, despite strong operational performance.

Smith acknowledged the disappointing nature of this price reduction for members, particularly in light of the rapid and severe downturn in the market cycle. He reiterated First Milk's commitment to maximizing the value of its members' milk and enhancing operational efficiencies to improve future returns.

First Milk's decision comes amidst a backdrop of challenging conditions in the dairy industry, wh ere producers continue to grapple with fluctuating market dynamics and price volatility. The cooperative's proactive measures aim to navigate these complexities while supporting its members.

This announcement follows a series of strategic moves by First Milk, including partnerships and achievements in product excellence, as evidenced by recent awards and collaborations.