Although no official explanation has been given, many in the sector point to oversupply of milk as the main driver. Arla has also lowered its conventional milk price, with a 1.7ppl cut from October 1 bringing it down to 45.34ppl. First milk cut their price by 2ppl for November which leaves their base price at 41.85ppl. For much of the past year, average farmgate prices have sat in the mid to high 40ppl range, despite record levels of milk production. However, it remained 11.6% below the record price set in December 2022.