Major Dairy Processors in the UK Increase Milk Prices

Three key players in the UK dairy industry, Müller, Arla, and First Milk, have announced increases in milk prices that will benefit farmers starting in August and September 2026. Müller will raise its price by 0.5p per litre, setting it at 35p per litre for suppliers meeting specific conditions under its Müller Advantage programme beginning September 1, 2026. According to Richard Collins, Agriculture Director at Müller Milk & Ingredients, this decision follows months of growing raw milk collections despite falling market prices.

First Milk will implement a 2ppl increase in its standard manufacturing litre, bringing the price to 34.85ppl, inclusive of a member premium, starting September 1. This marks the largest hike among the three companies.

Arla will increase its conventional UK headline price by 0.88ppl, reaching 38.15ppl in August. The co-operative also noted that an increase in FarmAhead Incentive points would add 0.03ppl to its on-account price. Arla reported that global milk supplies have stabilized at high levels, with commodity prices remaining steady and protein markets showing signs of strengthening.

While the conventional market outlook appears stable, Arla's UK organic headline price will stay at 56.43ppl in August, with demand described as stable despite supply-demand imbalances.