NFU Scotland is calling on milk processors to deliver meaningful milk price increases for August and September as falling production and soaring spot market prices underline the need to restore confidence across the dairy sector.
Milk production across Great Britain has fallen sharply following the recent heatwave and is now at, or below, the five-year average, with hot weather forecast to continue through the remainder of July. At the same time, spot milk prices have climbed to around 50p per litre, highlighting the growing value of milk in the marketplace.
Despite these market conditions, some Scottish dairy farmers continue to receive prices that fail to cover the cost of production. While the average milk price in Scotland is thought to be in the mid-30 pence per litre, NFU Scotland has been contacted this week by two producers receiving just 22p and 24p per litre respectively after transport costs for their June milk production.
NFU Scotland's Milk Committee Chair, Bruce Mackie said:
"The market is sending a clear signal. Milk supplies are tightening, spot prices have risen sharply and processors need to reflect those conditions in the prices they pay producers.
"It is simply not sustainable for dairy farmers to be receiving little more than 20 pence per litre while input costs are high and still increasing. Without fair returns, producers cannot continue investing in their businesses or have confidence in the future."
The Union says timely milk price increases are essential if Scotland is to maintain a resilient dairy industry capable of meeting future demand.
The call comes as the latest Scottish Dairy Herd Analysis, published by the Scottish Dairy Cattle Association, shows continuing structural change within the sector. During the first six months of 2026, Scotland lost a net total of ten dairy herds, leaving 740 dairy herds nationwide.
While producer numbers continue to decline, the national dairy herd has increased slightly to 181,581 cows, with average herd size rising from 236 to 245 cows. NFU Scotland says this reflects continued investment by those remaining in the sector, with businesses adopting new technologies and improving efficiency to remain competitive.
Bruce Mackie added:
"Although there are fewer dairy businesses, those that remain are investing, innovating and producing milk to exceptionally high standards. Scotland has a highly efficient and resilient dairy sector that is well placed to deliver a reliable supply of milk despite increasingly challenging weather conditions.
"Processors looking for long-term certainty of supply should recognise that Scotland offers an excellent opportunity for future investment. But that investment must start with fair milk prices that give producers the confidence to keep producing."
NFU Scotland believes the combination of tightening milk supplies, stronger market returns and continued investment by Scottish dairy farmers presents a clear case for significant milk price increases in the months ahead.
Notes to editors:
A photograph of Bruce Mackie is attached
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