Arla will cut the price it pays UK dairy farmers for their milk by 1.23 pence a litre from 7 July.
The European dairy co-operative, which buys milk from one in four UK dairy farmers, said the price cut was a result of a 1.5 euro cents per kilo reduction in its global on-account milk price.
This brings the standard litre on-account price to 31.75 pence a litre, or 32.52 pence a litre once the forecast supplementary 13th payment is taken into account.
The 13th payment is paid to all farmer members of the co-operative at the end of March, based on the previous year’s milk price.
Commenting on the reduction, Ash Amirahmadi, Arla Foods UK’s head of milk and member services, said: “In previous months, Arla Foods amba has reported challenging global market conditions for dairy products and, generally speaking, this remains the case.”
The dairy co-op cut its milk price by 1.27pence a litre on April 28 – the cut was blamed on a “significant negative trend in commodity markets”.
