Dairy farmers supplying Muller are facing further pressure on already wide margins after processors confirmed further milk price cuts, deepening concerns about the sustainability of production as prices fall below production costs.
From February 1, 2026, farmers who qualify for the Muller Advantage Program will receive a P3 reduction in farm entry milk prices to 35.5 pence per liter.
This reduction follows a previous reduction due to take effect from January 1, with Mueller Advantage suppliers receiving 1.5 fewer jobs to 38.5.
Richard Collins, director of agriculture at Muller Milk & English, said the decision reflected ongoing market weakness. “The overall dairy market remains under significant pressure,” he said.
“Our daily milk collection is much higher than this time last year and market prices are even lower. Supply and demand continue to be closely monitored.”
The announcement comes as many dairy farmers are already being paid less for their milk than the cost of producing it, a situation that has rapidly worsened in recent weeks.
Rapid increases in milk production in the UK and overseas have driven down the market, while feed, energy and labor costs remain historically high, leaving businesses with little room to absorb further losses.
Industry groups warn that some farms are being pushed to the brink and falling prices are putting severe financial pressure on producers, while unions are calling for urgent action from processors and retailers.
Muller’s move reflects a broader pattern across the sector, as global milk volume growth continues to outstrip demand. First Milk has confirmed that milk prices will be cut by 3.6p per liter from January 2026, to 32.25p for a standard produced liter including membership premium.
Other major buyers also announced price cuts. Since December, Arla’s overall price for conventional milk has fallen by 3.50 percent to 39.21 percent, while its organic price is unchanged at 57.95 percent. Along with Muller, these cuts highlight the magnitude of downward pressure across the dairy market.
With further cuts confirmed until early 2026, producers warn that continued low prices risk undermining confidence, investment and future milk supplies unless market conditions improve or greater support is provided through the supply chain.
