UK milk production growth slows as milk prices decline

In April 2026, dairy farmers in the United Kingdom faced tighter margins at farm level, even as both milk collection volumes and milk components increased compared to last year. The persistently high feed costs from earlier in the year continue to put pressure on dairy producers’ margins, even as major processors are keeping prices stable heading into the summer.Total milk collections in the United Kingdom were 1,408 million litres in April, representing a slight short-term growth of 0.5% compared to March and 0.8% compared to April last year. In January, the year-on-year increase was more than 4%, indicating that production growth is slowing down.While fat and protein trends varied slightly from month to month, the overall composition of UK milk remained stable compared with the previous year. The average fat content decreased by 1.4% from the prior month to 4.38%. Its level remains slightly higher than in April last year despite the decline. On the other hand, protein content averaged 3.5%, increasing 2.5% from April last year and up 0.3% from the previous month.As key input costs remained high and farmgate milk prices declined, producer margins tightened. In April 2026, the average UK farmgate milk price dropped to 33.99 ppl (pence per litre), a notable 22% fall from April 2025, representing a 2.2% (0.78 ppl) reduction from March 2026.At the same time, feed costs remained elevated, according to Defra, with feed wheat rising 2.3% month-on-month, feed barley increasing 0.4%, and soybean meal gaining 6.8%. Stable milk prices for June and JulyMajor dairy processors have announced their pricing structures for June and July 2026 in response to market volatility and evolving supply dynamics. Arla will maintain its conventional milk price at 35.83 ppl for June, and organic milk will remain at 56.31 ppl. Global commodity markets are generally stable, with rising protein prices offsetting declines in fat prices, according to Arla. However, the broader market remains uncertain due to geopolitical tensions in the Middle East and a persistent supply-and-demand imbalance in organic milk. Müller will also keep its price at 34.5 ppl in July for farmers who qualify for the Müller Advantage premium. First Milk, meanwhile, has increased its rate by 0.6 ppl for July, raising its standard manufacturing price to 31.35 ppl.