Fri, 16 Jan 2026

Fri, 16 Jan 2026 'We're in survival mode': The milk price crisis draining dairy farms

Adam and Lucy Johnstone have seen the money they receive for their milk tumble over the last three months.

* Dairy farmer Adam and Lucy Johnstone in Scotland are struggling to make a profit due to a 25% price cut on milk by dairy giant Arla.
* The price they receive per litre of milk has fallen below their production cost, leaving them with an unsustainable financial situation.
* Arla blames the price slump on global oversupply of milk and flat demand for dairy products.
* The National Farmers Union Scotland (NFUS) describes the price drop as "unprecedented" in speed and scale.
* Other large dairy processors such as Muller and First Milk have also cut prices, citing pressures from collecting, processing and selling excess milk.
* NFUS is calling for trust, transparency, and fairness throughout the supply chain.
* The Johnstones are considering selling their milk directly to local customers or leaving farming altogether due to the financial pressures.
* UK milk production is expected to exceed 13 billion litres this year, but prices for dairy products such as mild cheddar, butter, and skimmed milk powder are at their lowest levels in five years.
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