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Most farmers are now being paid less than it costs to produce their milk, forcing some to consider scaling back or exiting production altogether.

NFU Scotland Vice President Robert Neill said:

“We’ve seen highs and lows before, but the speed of this price drop is unprecedented. Farmers are under real pressure, and the supply chain must act responsibly.”

While some farmers on organic or supermarket-aligned contracts are partially protected, many are fully exposed to market risks. Milk production in the UK and abroad has surged, driving prices down at a time when feed and input costs remain high.

UK Farming Unions Send Warning to Processors

In a show of unity, the four UK farming unions – including NFU Scotland – have written a joint letter to milk processors, urging fairness, transparency, and responsible behaviour.

NFU Scotland Mike Committee Chair Bruce Mackie added:

“Prices are falling fast while costs remain high. Processors must communicate clearly and fairly with suppliers. Farmers deserve transparency and trust during such a critical time.”

The letter reminds buyers of their obligations under new Fair Dealing regulations, including the right for farmers to request a clear explanation of how prices are calculated. It also marks the first real test of the contract regulation adjudicator.

Many farms invested heavily over the past two years. That spending supported the wider rural economy – but with income falling, servicing those investments is now a major concern.

NFUS is also speaking directly with banks and retailers, calling for support and flexibility.

Robert Neill added:

“This is about more than milk it’s about rural jobs, local food security, and the future of our communities. The supply chain must share the risk, not just the reward.”

Significant investments like Arla’s £144 million Lockerbie upgrade and growing export success show the sector’s long-term potential – but urgent help is needed now to make sure farms survive to benefit.

Notes to editors:

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Contact Carly Ross on 07860 642826