AHDB: Milk prices likely to remain under pressure until mid-2026

The surplus situation in the UK and globally is putting pressure on farm milk prices at the beginning of 2026. AHDB reports that the dairy industry enters the new year amidst a decline driven by supply, with milk production exceeding demand not only in the UK but also in the global market. In the UK, milk production surged in the autumn, with October deliveries up by nearly 7% compared to the same period last year. This increase maintained at around 3–5% until early January, quickly creating downward pressure on the wholesale market. In December, the dairy commodities market saw a sharp decline, with ingredient cream prices down by about 25%, butter prices falling, and skim milk powder continuing its downward trend. Processing businesses struggled to handle the large volume of incoming milk, while inventories accumulated faster than market absorption capacity. Accordingly, farmgate milk prices also declined. AHDB noted that many buyers announced price cuts from the end of 2025 to ...