Milk prices ‘dropping like a stone’, MP warns
An “unprecedented” milk oversupply is “making life very difficult” for dairy farmers in the West, driving down prices.
Major dairy buyers such as Arla and Muller have now reduced the amount they pay farmers to around 35p per litre. This time last year the average price was 46p.
Mark Humphreys, President of Somerset’s NFU and a dairy farmer himself, said: “We’ve had a very serious drought, which has made life very difficult for us. We’re now entering a situation where we have so many exports coming into this country that it’s competing with our milk prices. It’s well below our costs of production.”
A spokesman for Arla said milk production volumes were increasing, so there was “significantly more milk available globally”.
Milk production in the UK is expected to exceed 13 billion liters for the first time this year.
Arla has reduced the price they pay farmers to around 35.73p per litre; This is 12p less than last January. Müller reduced the price to 38.5 pence per liter (42.25 pence in 2025).
Glastonbury and Somerton MP and farmer Sarah Dyke is currently trying to get the Dairy Farming and Dairying bill through parliament.
The aim is to further protect the farmer from such price fluctuations.
“The price of milk on farms is falling like a rock. This is a bill that ensures fairness for our farmers,” Dyke said.
“There’s a lot of pressure on the market at the moment as we compete against imports from the UK, New Zealand and the US.”
Humphreys added: “Not all farmers were in favor of leaving the EU. We have lost the support that other European farmers had. Perhaps we are still in transition.”
‘It is important to ensure justice’
Richard Collins, agricultural director at Müller Milk & Ingredients, said: “Our daily milk collection volumes are still much higher than this time last year and we are seeing further declines in market prices.
“Supply and demand continue to be closely monitored.”
A spokesman for Arla added: ”Global milk production has increased so there is significantly more milk available around the world. That’s why it affects Negative effects on global commodity marketsThis causes prices to drop.”
A Defra spokesman said: “This government supports our hard-working dairy farmers and wants to see fair supply chains and transparent dairy contracts.
“Ensuring fairness in supply chains is crucial for UK dairy farmers and to support the sustainability of the sector.”
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