An “unprecedented” milk supply glut is driving down prices for Western dairy farmers and making “life very difficult.”
Major dairy buyers such as Arla and Muller have now slashed the prices they pay farmers to around 35p a liter. The average price at this time last year was 46p.
Dairy farmer Mark Humphreys, chairman of Somerset NFU, said: “We’ve had a very severe drought and it’s made life very difficult for us. “What we have now is a situation where a lot of exports are coming into the country and competing with the price of our milk. It’s well below our cost of production.”
An Arla spokesman said milk production had increased, resulting in “a significant increase in milk around the world”.
UK milk production is expected to exceed 13 billion liters for the first time this year.
Arla lowered the price it pays farmers to about 35.73 pence per liter, more than 12 pence lower than last January, while Müller cut prices to 38.5 pence per liter, compared with 42.25 pence in 2025.
Glastonbury and Somerton MP and farmer Sarah Dyke is currently working to get her Dairy Farming and Dairying Bill passed through Parliament.
The aim is to further protect farmers from such price fluctuations.
“Farmgate prices for milk are falling significantly. This is a bill that ensures fairness for our farmers,” Dyck said.
“There is a lot of pressure on the market at the moment because the UK is competing with imports from New Zealand and the US.”
Humphreys added: “Not all farmers are in favor of leaving the EU. We have lost the support that other European farmers had. Maybe we are still in the transition phase.”
“Ensuring fairness is key”
Richard Collins, agricultural director at Müller Milk & Ingredients, said: “Our daily milk collections are still well above last year and we are seeing market prices fall further.
“Supply and demand will continue to be closely monitored.”
An Arla spokesperson added: “Global milk production has increased and therefore the quantity of milk available around the world has increased significantly. As a result, this has had a negative impact on global commodity markets, leading to lower prices.”
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 vital for British dairy farmers and supporting the sustainable development of the industry.”
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