Dairy farmers supplying Arla face another cut to their milk price in January.
The European farmers’ co-operative will cut its standard litre milk price by 2.03 pence to 24.81p a litre from January 5, 2015.
This follows a 1.63 pence price cut on December 1.
The company, which produces Lurpak, Anchor and Cravendale, said the latest price cut was a result of a European-wide reduction of 2.5 eurocents per kilo to its price.
Arla’s head of milk and member services in the UK, Ash Amirahmadi, said: “Global supply and demand are still out of balance which is continuing to create downward pressure.
“The knock on impact of weak international prices on the European markets has affected Arla’s business performance as well as that of the entire dairy industry in Europe.”
He said the recent upturn in the Global Dairy Trade auction was welcomed but warned “it is too early to conclude that there is any change in underlying market conditions”.
Earlier this month the main milk buyer in the north and north-east – Muller – confirmed it would also be cutting its milk price in January.
The dairy giant will cut its standard litre milk price by 1.2 pence to 25.9p a litre on January 10, 2015.
It blamed a double whammy of record milk being produced on farm and weak demand for the cut to its price.
This followed an announcement from UK dairy farmers’ co-operative First Milk that it would be cutting its milk price on January 1, 2015, as a result of falling market returns.
The co-op will cuts its standard litre liquid price by 1p to 21.7p a litre, while its manufacturing price will fall by 1.1p to 22.9p a litre.