Milk prices fall sharply, Somerset MP warns

Local farming representatives say an oversupply of milk has pushed farm-gate prices down to roughly the mid-30p per litre range from about 46p a year earlier, and UK production is expected to exceed 13 billion litres this year.

Local farming leaders and an MP say an oversupply of milk is reducing the prices paid to dairy farmers in Somerset and the wider West. Major buyers, including Arla and Müller, have cut the amounts they pay to farmers to the mid-30p per litre range compared with about 46p at this time last year. Industry spokespeople say global milk production has risen and UK production is expected to top 13 billion litres this year. MP Sarah Dyke is promoting a Dairy Farming and Dairy Products bill intended to improve fairness in the sector. Key points: - Officials and industry spokespeople report increased global milk production, which they say is creating an oversupply that is weighing on prices. - Current reported prices are about 35.73p per litre from Arla and about 38.5p per litre from Müller, down from averages near 46p a year earlier. - Policy step: MP Sarah Dyke is seeking to progress the Dairy Farming and Dairy Products bill through Parliament to address fairness in the dairy supply chain. Summary: Falling farm-gate prices are reported to be placing financial pressure on dairy producers in the West, and a local NFU chair described the current price as below the cost of production. The Dairy Farming and Dairy Products bill is being advanced in Parliament to address market fairness; its progress in Parliament is undetermined at this time.