Milk purchaser Arla Foods has announced that it is imposing a small cut in the price it pays to its members who are not aligned to either Asda or Tesco, effective from 1 May.

These suppliers will see their premium over the Arla Foods Milk Partnership standard litre price cut from 0.3p/litre to 0.25p/litre, taking their average return to 24.25p/litre.

The change is the result of last week’s announcement that supermarket Asda is slimming down its pool of dedicated Arla producers from about 500 to nearer 300.

This means that the 1p/litre premium paid by supermarket Morrisons, which is targeted at AFMP’s non-aligned producers, will have to be spread over a larger number of suppliers.