Milk prices ‘dropping like a stone’, Somerset MP warns

An “unprecedented” oversupply of milk is driving prices down for dairy farmers in the West, making “life very difficult”.

Major dairy buyers like Arla and Muller have now cut the amount they pay farmers to around 35p per litre. The average price this time last year was 46p.

Chair of Somerset’s NFU Mark Humphreys, a dairy farmer himself, said: “We had a very severe draught, it’s made life very difficult for us. We’re now going into a situation where a lot of exports are coming to this country, competing with our milk price. It’s well below our cost of production.”

A spokesperson for Arla has said the milk production volume has increased so there is “significantly more milk around the world”.

For the first time, UK milk production is expected to exceed 13 billion litres this year.

Arla has cut the price they pay farmers to about 35.73p per litre, which is more than 12p lower than last January, while Müller has reduced the price to 38.5p per litre, compared to 42.25p in 2025.

Glastonbury and Somerton MP and farmer Sarah Dyke is currently trying to get her Dairy Farming and Dairy Products bill through parliament.

The aim is to protect farmers further from these kind of price fluctuations.

“The farm gate price of milk is dropping like a stone. This is a bill ensuring fairness for our farmers,” Dyke said.

“There is so much pressure in the market at the moment as the UK is competing against imports from New Zealand and the US.”

Humphreys added: “Not all farmers were in favour of leaving the EU. We lost the support other European farmers have had. Perhaps we’re still in that transitional phase.”

Richard Collins, agriculture director at Müller Milk & Ingredients, said: “Our daily milk collection volumes are still much higher than this time last year and we’re seeing further market price reductions.

“Supply and demand is continuing to be monitored closely.”

A spokesperson for Arla added: ”Global milk production has increased so there is significantly more milk around the world. This is therefore impacting negatively on the global commodity markets, resulting in lower prices.”

A Defra spokesperson said: “This government backs our hard-working dairy farmers and wants to see fair supply chains and transparent dairy contracts.

“Ensuring fairness in supply chains is key for UK dairy farmers and in supporting the sustainability of the sector.”