Arla has dropped its member milk price by 0.94p/litre, as dairy commodity markets continue to slide downwards.

Co-op members will receive a standard litre price of 31.58p/litre from 4 August, which includes a small rise in the 13th payment.

Arla has now cut its milk price by close to a penny three times in the last four months .

Prices on Fonterra’s Global Dairy Trade Auction fell 8.9% on 15 July , hitting an 18-month low and dashing hopes of an early summer recovery.

“This milk price reduction is necessary due to a further downward movement in global and European prices, which are affecting the entire industry,” said Arla UK’s head of milk and member services Ash Amirahmadi.

On Wednesday Dairy Crest cut its liquid and manufacturing prices by 1.1p/litre from 1 September.

Liquid milk suppliers will be paid 30.1p/litre and those supplying the factory in Davidstow, Cornwall, will receive 32.1p/litre.

Dairy Crest group procurement director Mike Sheldon said the business had balanced reflecting the market environment with reducing volatility to farmers.