Dairy farmers supplying Robert Wiseman are set to have their milk price cut by 1p/litre.
The dairy confirmed its milk price will be reduced to 24.02p/litre from 1 May, but guaranteed the price would not be lowered again for three months.
Pete Nicolson, Wiseman’s milk procurement director, said the dairy had hoped to avoid a milk adjustment from May, but other moves in the market had compromised its competitive position.
“Regrettably, we cannot maintain a milk price which doesn’t reflect the returns we are getting from bulk cream and is significantly out of step with the rest of the market,” he said.
“However, in order to provide an element of stability going forward we have agreed to maintain the new price as a minimum until 31st July 2009.”
World dairy markets remained “in the doldrums”, but healthier relationships between global supply and demand would in time lead to higher levels of stability in the dairy supply chain, he added.
Colin Telfer, Wiseman Milk Partnership chairman, said the price cut was a blow for Wiseman suppliers.
“However I do welcome the price guarantee for the next 3 months from Wiseman and I look forward to signs of the market strengthening with the prospect of a return to rising milk prices once again.”