Freshways and Arla Foods Cut Milk Prices for UK Farmers

Milk processors Freshways and Arla Foods have reduced the prices paid to dairy farmers in the United Kingdom, adding financial pressure to a sector already struggling with drought, volatile markets, and high fuel and fertilizer costs.

Freshways announced a significant price cut of 7p per litre effective December 1, which will lower the price to 29.4p per litre. Managing director Bali Nijjar attributed the decision to rising costs and stagnant dairy markets. Arla Foods implemented a smaller reduction of 0.45p per litre in November, bringing its standard milk price to 40.41p per litre, though it maintained prices for organic milk.

The National Farmers' Union condemned the Freshways cut as "hugely disappointing." Dairy board chair Ian Harvey stated that confidence in the sector is "at rock bottom." While some supermarkets have committed to cost-of-production pricing, many farmers remain unable to switch suppliers due to existing contracts with processors.