Muller Wiseman has cut its milk price by 1.8p/litre, blaming the continuing slide in commodity prices.
Suppliers not aligned to supermarkets will be paid 29p/litre from the 1 October.
Muller’s price is now 4.6p/litre lower than it was in April.
The decision follows Arla’s 1.2p/litre cut last week, which led lobby group Farmers For Action to ask its members to consider fresh protests.
See also: EU issues emergency milk market measures
In a statement, Muller picked out the 27% year-on-year drop in butter prices and 30% fall in cream values, made worse by high milk production around the world.
“Unfortunately, it is a reality that milk supply hasn’t eased and markets are in free fall.”
Roddy Catto. chairman of the Muller Wiseman milk group
Muller head of group milk supply Martin Armstrong said the business would continue to invest in adding value to milk but was not immune to the severe decline in returns for globally traded commodities.
“Realisations from these products are now substantially lower and after a period of record milk prices we have no option other than to reflect this in the farmgate milk price we offer,” he said.
Farmer Roddy Catto, chairman of the Muller Wiseman milk group, said the board was disappointed with the scale of the drop but had debated hard with the company to reach an agreement.
“Unfortunately, it is a reality that milk supply hasn’t eased and markets are in free fall,” he said.
“As a board we will continue to work with the company to have constructive dialogue and understanding that neither the board nor the company like the volatility of the market we find ourselves in.”