Müller leads fresh farmgate milk price reductions as global oversupply keeps UK dairy returns under pressure.
UK dairy farmers are once again confronting shrinking returns as Müller becomes the latest major processor to reduce its farmgate milk price, citing sustained weakness in dairy markets and elevated milk supplies across the UK and beyond. From 1 March 2026, suppliers meeting criteria for Müller’s Advantage programme will receive 34.5 pence per litre (ppl) — a 1 ppl reduction on the previous price as part of broader market adjustments.
The reduction at Müller reflects a wider trend of price cuts across UK milk buyers, including another recent First Milk move. First Milk confirmed a 2 ppl reduction from 1 February 2026, lowering the manufacturing standard price to roughly 30.25 ppl including member premiums, underscoring the depth of the market downturn for dairy producers.
Industry data points to a supply-driven downturn as milk production volumes have climbed sharply. October deliveries in the UK were reported at nearly 7 % higher than a year earlier, and production has remained elevated into early 2026, keeping supply well ahead of demand and placing continued downward pressure on wholesale prices and farmgate returns.
Analysts and levy bodies such as the Agriculture and Horticulture Development Board (AHDB) expect milk prices to remain weak through at least the first half of 2026 unless supply/demand imbalances ease, with some price forecasts suggesting little near-term recovery. This environment of oversupply is mirrored across other processors and commodity sectors in the dairy industry.
For UK dairy producers, these ongoing farmgate price cuts — with Müller and First Milk joined by other co-ops in reducing payments — intensify concerns about profitability, cost of production coverage and long-term sustainability of dairy operations. Many farmers face margins squeezed by both lower prices and ongoing input costs in a global context of high milk volumes and softening commodity markets.
Source: FarmingUK – https://www.farminguk.com/news/dairy-farmers-hit-by-further-milk-price-cuts-from-muller_67937.html
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