Dairy processors First Milk, Barber’s and Muller have all confirmed holds for farmgate milk prices in September.
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Milk co-operative Arla had previously announced a hold for August.

Market sentiment is weakening for dairy, with UK wholesale prices falling in July and the Global Dairy Trade (GDT) online auction price index seeing its eighth consecutive drop on 3 August.

Despite the changing variables of global weather affecting all dairy regions, global milk supply is rising at +3.3% which could lead to farmgate price cuts later this year, said Nick Holt-Martyn, principal consultant at The Dairy Group.

“While the post-Covid boom has increased demand, this level of supply is likely to lead to price falls at the farmgate in the fullness of time. With the inflation risk high due to the imbalance of supply and demand in the wider economy and the same weather issues affecting animal feed supply, 2022 is looking like a challenging business environment.”

First Milk

The price for a manufacturing standard litre will remain at 31p/litre during September for First Milk members, although this includes the 0.5p/litre member premium which is not paid until the end of the milk year.

Prices had previously been increasing steadily for four consecutive months.

“First Milk is performing in line with expectations, and we are pleased to be able to offer stability in price at this time. We remain focused on delivering dairy prosperity for our members,” said Robert Craig, First Milk’s vice-chairman and farmer director.


Dairy farmers supplying Muller as part of its Advantage programme will receive a milk price of 29p/litre from 1 September. However, this includes the 1p/litre advantage premium, which is not paid until January.

The Muller Advantage programme was designed to improve supply chain collaboration and herd health, and reduce environmental effects.


Cheesemaker Barber’s has announced farmers will continue to be paid 30p/litre for a standard litre during August and September.

Nominations are open for Fonterra’s board election but a repeat of the drama that rocked the vote three years ago can be ruled out.

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