The UK dairy market is experiencing significant turmoil as spot milk prices have dramatically fallen due to a surge in milk supply, leaving processors overwhelmed. According to the latest market updates, spot milk prices dropped to as low as 28-30ppl (pence per litre) — a sharp decline from recent levels. This sharp fall is attributed to an unanticipated increase in milk production combined with subdued processing demand, resulting in excess volumes flooding the market.
Processors, already grappling with logistical and storage limitations, are being forced to either offload milk at significantly discounted rates or, in some cases, dispose of excess quantities. The report highlights that certain processors, unable to absorb the surplus, are even offering negative pricing scenarios, where farmers are being charged to have their milk collected and disposed of.
This situation has raised alarms within the dairy farming community, with industry leaders calling for immediate balancing measures, stronger supply planning, and better alignment between farm production and market absorption capacity. Market observers warn that unless quick interventions are made — either through increased exports, product diversification, or regulated supply management — farmer incomes and processor sustainability will be severely impacted in the coming months.
📊 Industry Insight:
This price crash is a clear reminder for dairy markets globally — including India — about the dangers of unchecked milk oversupply and the critical need for demand-driven production planning, efficient supply chain balancing, and value-added processing strategies.
Source : Dairynewes7x7 April 13th 2025 Farmers weekly