UK dairy farmers face further pressure as milk processor cuts prices
Summary
Two UK milk processors have cut the prices they pay farmers as abundant milk supplies and weaker dairy markets squeeze returns. Freshways will cut its price by 7p per litre from 1 December, while Arla will reduce its standard price by 0.45p per litre in November.Key Facts
- Freshways will pay 29.4p per litre from 1 December, after cutting its price by 7p per litre.
- Freshways said weaker dairy markets and higher costs led to its decision.
- The Freshways cut nearly cancels out 9p per litre in increases the company introduced over the previous two months.
- Arla cut its standard milk price by 0.45p per litre to 40.41p in November.
- Arla kept its organic milk price unchanged at 58.25p per litre.
- The National Farmers’ Union called the Freshways cut “hugely disappointing.”
- A strong production period in the UK and Europe last autumn contributed to a global milk oversupply.
- The article says many UK dairy producers were already being paid less for milk than it cost them to produce.
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