Dairy co-operative First Milk has announced plans to cut the price it pays for milk by 0.5p/litre from the beginning of April.
Chief executive Peter Humphreys pointed the finger of blame at Arla for starting off the current round of price slashing.
“Arla’s recent price reductions have destabilised the liquid market, and this coupled with price reductions in the cheese sector, has created such a downward price pressure that a price cut from 1 April was unavoidable.
“We held off as long as we could in reducing our milk price, despite other players in the market cutting prices as far back as February, and have done everything possible to minimise the impact on our members.
“Yet again, however, this situation demonstrates that the structure of the industry is working to the detriment of dairy farmers.”
Mr Humphreys pointed to a long period of stable pricing stretching back to October last year, when 0.2p/litre was shaved off the price.