# Freshways Cuts Milk Price by 7ppl to 29.4ppl for December Despite Sector Pressure

> Freshways cut its December milk price by 7ppl to 29.4ppl, reversing recent increases, as its managing director said selling prices had not recovered.

- Published: 2026-11-03T10:00:16+00:00
- Section: Business
- Author: News Desk
- URL: https://newsforagent.com/news/2026-11-03/freshways-milk-price-cut-december
- Source: [Thegrocer](https://www.thegrocer.co.uk/news/freshways-slashes-milk-price-despite-sector-hitting-rock-bottom/725464.article)

## Key takeaways

- Freshways cut its base milk price by 7ppl to 29.4ppl for December.
- The cut follows increases of 3ppl from September 1 and 6ppl from October 1.
- AHDB analyst Susie Stannard warned other processors might follow with similar cuts.

Freshways has cut its base milk price by 7ppl to 29.4ppl for December, reversing months of increases. The processor announced the reduction despite what [The Grocer](https://www.thegrocer.co.uk/news/freshways-slashes-milk-price-despite-sector-hitting-rock-bottom/725464.article) described as a dairy sector at "rock bottom". Freshways is a UK milk processor that buys milk from farms and supplies liquid milk to the market.

## Freshways Reverses Its Autumn Price Rises

The December cut follows increases from Freshways of 3ppl from September 1 and a further 6ppl from October 1. Managing director Bali Nijjar said selling prices had "not moved to reflect" the increase "so that money has not been recovered".

"The liquid milk market is intensely competitive and we have lost volume as a result," Nijjar said. "Lost volume raises our processing and distribution cost on every litre that remains, and pushing selling prices higher in current conditions would risk more lost volume, which would in turn reduce the milk Freshways can sustainably purchase from its farms."

AHDB lead dairy analyst Susie Stannard said the business had "overegged those price movements upwards". "Normally people are a bit more progressive about milk price changes because it's like boiling a frog, if you do it by degree, people can manage that a bit more easily," she said. Stannard warned that "sometimes these big price movements are contagious, and other processors might follow suit".

NFU Dairy Board chair Ian Harvey called the decision "hugely disappointing at a time when confidence in the sector is already at rock bottom", pointing to drought, bluetongue and environmental schemes. "Like all farmers, dairy producers need confidence to plan, invest and grow their businesses," Harvey said. "Sudden and substantial price reductions undermine that confidence."

Nijjar cited AHDB data showing a continued shortfall of milk in September, at a lesser degree than in August. Commodity prices have contracted at the same time, with the bulk cream price falling by 11% from September to October and butter by 7% in October, a 29% reduction on last year. Nijjar said this left "little demand for cream to make butter and little prospect of an early recovery in fat demands".

Stannard pointed to increased production in the US, where the market now exports around 17% of product, putting a "lid on where global prices can get to".

## December Start Date for the New Base Price

The 7ppl reduction takes effect for December, when Freshways' base price stands at 29.4ppl.

## Companies in this story

- Freshways · website: https://www.freshways.co.uk

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