Dairy Producers Face Further Milk Price Cuts
Farmgate milk prices continue to decline, with many producers expected to receive less than 40p/litre by the end of the year.
The main factors contributing to this trend are falling UK wholesale prices for butter, cheese, and cream, as well as weakening commodity markets across Europe.
- Ample global supplies
- GB milk deliveries running over 6% higher than last year
As a result, spot prices have been quoted at below 20p/litre, with industry sources suggesting that prices are likely to remain low until the second half of 2026.
Prices are likely to remain low post-Christmas and into the spring if supplies remain high.
Author's summary: Dairy producers face significant price cuts due to market pressures.