Milk prices have fallen sharply in the UK, leaving many dairy farmers struggling to cover costs. Kelly and Ed Seaton, who rear 200 pedigree Holstein cows in northwest England, expect to lose money this year.
Across Britain, dairy farmers warn that milk production is no longer profitable. The number of UK dairy producers has fallen by 20% since 2019, now totaling around 7,000, according to the Agriculture and Horticulture Development Board.
Milk prices paid by processors have dropped by up to 15 pence per litre, or about 40%, since October 2025. Increased domestic and global production has created a glut, while consumer demand remains steady. “It’s simply a matter of too much milk in the market,” said Kelly Seaton, whose family has been in dairy farming for over a century.
UK milking herds numbered 1.6 million cows in January, the lowest in a decade. However, drought conditions last year led farmers to rely on concentrated feed, increasing milk yields. Britain is nearly 90% self-sufficient in dairy, but global price volatility affects local incomes.
Some dairy farmers now sell milk at a loss. Kelly Seaton produces milk at 40 pence per litre but receives just 30.5 pence from her processor. Her revenue this month will be £20,000 lower than in September. Other farmers report similar losses, with Paul Tompkins in the Vale of York expecting a £600,000 deficit this year.
Major processors such as Muller, Arla, and First Milk dominate the market, leaving farmers as “price takers,” with limited control over rates. Many call for cost-of-production-aligned contracts with supermarkets to stabilize incomes.
The UK milk supply typically increases in spring, raising the risk of further price drops. Rising costs for fuel, energy, and fertiliser are compounding pressures on farmers.
Despite challenges, long-term global demand for dairy is expected to grow, driven by population growth and shifting dietary preferences. The NFU warns that without a profitable dairy sector, UK food security could be at risk.
Farmers like Seaton remain resilient. “We just have to accept bad times and hope the good times balance them,” she said, highlighting the perseverance of Britain’s dairy farmers amid market uncertainty.
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