Freshways raises standard milk price to 38ppl for October

Freshways, an independent British dairy processor, has set its standard liquid milk price at 38 pence per litre for October production. The new rate will apply from October 1, 2026, and represents an increase of 6ppl over the previous 32ppl level. The announced structure includes a base payment of 36.4ppl and a sustainability incentive of 1ppl.

In a communication to its farmer-suppliers, managing director Bali Nijjar said that physical supply-and-demand conditions had moved in support of higher prices. The company said wholesale and retail dairy buyers would need to accommodate higher price levels as production costs and supply conditions changed.

Freshways linked the supply position to seasonal conditions and animal-health risks. Difficult weather reduced crop and silage yields in several parts of Britain, according to the processor, while some farmers began using winter forage reserves earlier than usual. The spread of bluetongue virus among regional livestock herds was also identified as a disruption to operations and a risk to autumn and winter milk volumes.

Data from the Agriculture and Horticulture Development Board showed that milk deliveries in Great Britain fell by 3.2% year on year in July. The decline was reported alongside a smaller national dairy herd and fewer registrations of replacement heifers. Other processors, including Müller, First Milk and regional cheesemaker Wyke Farms, announced autumn pool prices between 35ppl and 40ppl.

Freshways is also changing the use of its processing network. Daily throughput has increased at the West Bromwich facility after the company closed its former plant in Acton. The West Bromwich site received full British Retail Consortium accreditation in early August.

Freshways said the 38ppl rate would support its efforts to retain supplying farmers, maintain intake volumes and secure raw milk for the winter demand period. The announcement follows several months of lower farmgate returns and compressed margins in Britain’s liquid milk sector.