Dairy farmers supplying First Milk will see milk prices reduced from February after the cooperative confirmed price cuts related to continued pressures in the dairy market.
First Milk has announced that milk prices will be reduced by 2p per liter from 1 February 2026, bringing the price per standard produced liter to 30.25p including membership premium.
The cooperative said the cuts reflected ongoing challenges to supply and demand weighing on profits across the dairy sector. It acknowledged that this decision would impact member companies operating in a volatile trading environment.
“This adjustment reflects the ongoing supply and demand imbalance in the dairy market, which continues to impact our overall profitability,” said Mike Smith, Farmer Director and Vice Chairman of First Milk.
He added: “We are fully aware of the pressures these changes will place on our members’ farm operations and remain focused on maximizing the value of our members’ milk.”
Smith said the company is also working to improve long-term performance. “In parallel, we are driving operational efficiencies to contribute to long-term profitability,” he said.
The announcement comes amid growing pressure on milk prices across the dairy industry. Dairy farmers supplying Muller under the Advantage program are also facing cuts from February, with the price of Farmgate milk set at 35.5p per litre, following a $3 cut.
With input costs remaining high and market conditions uncertain, farmers continue to warn that milk prices are increasingly falling below production costs, raising concerns about the long-term sustainability of British dairy farming.
