Müller and First Milk Announce Price Cuts Amid Dairy Market Challenges

Müller, a major dairy processor, has announced a cut in its milk price to 34.5 pence per litre (ppl) for suppliers meeting the Müller Advantage programme criteria, effective from March 1, 2026. This represents a decrease of 1ppl from their previous price, as the company cites significant pressure across dairy markets. Richard Collins, agriculture director at Müller Milk & Ingredients, noted that milk collections remain well above last year's levels, contributing to the decline in market prices.

First Milk, a cooperative, has similarly announced a price reduction. The price for a standard manufacturing litre, including the member premium, will fall by 2ppl to 30.25ppl starting February 1, 2026. These adjustments are part of a broader trend within the dairy sector, driven by a supply-driven downturn and prolonged market weakness.

New analysis from the levy organisation AHDB indicates that milk prices will likely remain under pressure through the first half of 2026, due to continued oversupply. The UK has seen a substantial increase in production, with October deliveries rising nearly 7% compared to the previous year. This surge in volumes has continued into early January, maintaining an approximate 3–5% increase.

The imbalance between supply and demand in both UK and global markets has led to rapidly falling wholesale prices, exacerbating the situation for dairy farmers. Both Müller and First Milk have committed to monitoring market conditions closely and are tracking supply and demand developments carefully.