Arla’s non-aligned milk suppliers face a 2p/litre price cut from 1 August, taking the group’s standard litre price to 25p/litre.

Others supplying Arla are on Sainsbury’s and Tesco cost of production price models and an Asda premium contract which is based on the standard litre price plus a premium.

More to follow.

For more on milk price cuts

Dairy Crest price cut hits producers hard

Farming group plans milk price cuts protest

Wiseman confirms milk price cut

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