As rising global milk volumes continue to drive down profits across the dairy sector, First Milk has confirmed it will cut its milk price by 3.6p per liter from January to 32.25p for a standard produced liter including membership premium.
The co-operative said the move reflected continued market pressures, with UK and global production reaching record levels and the imbalance between supply and demand showing no sign of easing.
Farmer Director and Vice Chairman Mike Smith acknowledged the impact this decision would have on members. “This change reflects continued challenges in the market,” he said. “UK and global milk production remains at record levels and the imbalance between supply and demand shows no signs of reversing.”
He added that the company’s operations continue to be strong, but the company was forced to cut prices due to weak market revenues. “We fully understand how disappointing this news is, especially given the speed and severity of the market cycle downturn,” he said.
Mr Smith stressed that the co-op remains committed to “driving operational efficiencies to maximize the value of our members’ milk and improve future profits.”
It’s not just first milk. Britain’s other major milk buyers, Arla and Muller, also announced cuts, as a surge in global milk volumes continues to push the market down and squeezes producer margins.
From 1 December, Arla’s conventional milk headline price will fall by 3.50 ppl to 39.21 ppl, while the organic price will remain unchanged at 57.95 ppl.
Farmers who qualify for the Mueller Advantage program will receive a 1.5-person reduction to 38.5 workers starting January 1, 2026.
