Dairy farmers supply Arla will see a 0.94 pence a litre reduction in their milk price from August 4.
The European dairy co-operative, which buys milk from one in four UK dairy farmers, said the price cut was a result of a 1.25 euro cents per kilo reduction in its global on-account milk price.
This will bring the standard litre UK on-account price down to 31.58 pence a litre – this takes into account a decrease of 0.98p in the on-account price and a 0.04p increase in the 13th payment.
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.
The company’s head of milk and member services in the UK, Ash Amirahmadi, said: “This milk price reduction is necessary due to a further downward movement in global and European prices, which are affecting the entire industry.”
Arla is a dairy co-operative owned by 12,600 dairy farmers across Europe, including around 2,800 in Britain. It is behind brands such as Lurpak, Cravendale and Anchor.
Earlier this week, Dairy Crest announced plans to cut its milk price by 1.1p from September 1 bringing its liquid price to 30.1p a litre and its Davidstow cheese contract price to 32.1p a litre.