Major UK dairy processors, including Arla, First Milk, and Müller, have announced price hikes for farmgate milk, driven by strong demand and stable global milk supplies. The increases aim to provide financial relief to farmers amid challenging weather conditions.
Dairy processors across the United Kingdom have announced price increases for farmgate milk, offering support to the industry amid strong wholesale demand for dairy products. Leading dairy companies, including Arla, First Milk, and Müller, confirmed they would be raising prices for conventional and organic milk supplied by their UK farmers.
Arla Foods, a cooperative owned by dairy farmers across Europe, disclosed that it would raise prices by 2.66 pence per litre (ppl) for conventional milk and 1.78ppl for organic milk, setting new UK manufacturing prices at 47.65ppl and 57.64ppl, respectively. Arla cited strong demand and steady global milk supplies as factors driving the increase. Arthur Fearnall, board director of Arla Foods amba, noted, “Global milk supplies are stable. Overall, the outlook is stable.” Paul Dover, Arla’s UK agricultural director, also thanked the farmers who participated in the company’s recent autumn roadshow, where they met with the UK leadership team and CEO Peder Tuborgh.
First Milk, a cooperative owned by approximately 700 farming families, announced a 1.25ppl increase, raising its milk price to 43.85ppl for a standard manufacturing litre, inclusive of member premiums. Vice-chairman Mike Smith highlighted the positive shift in commodity prices, although he acknowledged the difficulties farmers faced due to recent heavy rainfall and challenging on-farm conditions.
Dairy processor Müller has also confirmed a 1ppl increase for its suppliers, bringing prices for farmers in its Advantage program to 42.25ppl. The Advantage program supports farmers in sustainable practices and herd health management. Richard Collins, head of agriculture at Müller Milk & Ingredients, stated that the company would continue monitoring market trends to support farmers facing economic pressures.
These price adjustments reflect a positive response to the strong demand for UK dairy products, providing local farmers with greater financial stability.