Arla and Müller announce another milk price cut amid rising supplies
1st December 2025
Milk processors Arla and Müller have announced cuts to farmgate milk prices, explaining the reductions as a response to expanding milk supplies.
Arla confirmed that its conventional milk price will decrease by 3.50ppl from 1st December 2025. The Arla Headline price for conventional milk will be 39.21ppl.
Arla’s price for organic milk will remain unchanged for December 2025. Thus, the Arla Headline price for organic milk will be 57.95ppl.
A spokesperson for the milk processor said: “Milk supplies continue to increase significantly, both globally and in EU. At the same time demand from retail and industry is stable.
“Hence, market players struggle to find short-term outlets for the sudden significant milk increase. Market prices are adjusting down due to plenty of milk available. The outlook continues to be negatively impacted by plenty of milk available.”
In the organic market, supply and demand are in balance, for now, Arla concluded.
‘Continued pressure evident across dairy markets’
Dairy farmers supplying Müller who meet the conditions for Müller Advantage will receive a milk price of 38.5ppl from 1st January 2026, a cut of 1.5ppl.
Richard Collins, agriculture director at Müller Milk & Ingredients said: “Unfortunately we can’t ignore the continued pressure that is evident across dairy markets.
“We’re seeing market price reductions, and daily collection volumes are still significantly higher than they were last year. As always, we are keeping a close eye on supply and demand.”
‘The one-sided contracts’
She said that these price cuts are yet another blow to farmers already under enormous pressure from high costs, uncertainty around future support, and extreme weather.
“The one-sided contracts that allow buyers to slash prices in this way are unacceptable and unsustainable.
“I have raised this many times in Parliament, and I will continue to press the government to act. The Agricultural Supply Chain Adjudicator must be given the resources, powers and scope to launch investigations and enforce standards. Or combined with the Grocery Code adjudicator to give it more strength. Farmers do not need another passive body – they need an adjudicator with teeth,” she added.
The MP noted that the Liberal Democrats have been calling for the Agricultural Supply Chain Adjudicator (ASCA) and Grocery Code Adjudicator (GCA) to be combined, arguing that separating them risks fragmentation and weakens regulatory effort.
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