Muller Wiseman has cut its milk price by 1.6p/litre to 32p/litre from June.
The drop is bigger than Arla’s 1.27p/litre drop from 28 April, but the European co-op is able to lower prices again in a month’s time if it chooses to do so.
Falling prices for dairy commodities around the world have put pressure on processors to cut farmgate prices, with the winning average on the Global Dairy Trade auction dropping for five consecutive sales.
Chairman of the Muller Wiseman milk group board Roddy Catto said farmers had worked with the company to minimise the reduction.
See also: Arla drops milk price
“Whilst the board is disappointed with a decrease from June, it is clear that given production levels off farm both locally and globally have been high and commodities are on a downward trend, the [Muller Wiseman] price is likely to be amongst the most attractive available to farmers who are not part of supermarket groups,” he said.
“Unlike the situation facing our colleagues elsewhere in the industry, this agreement means no immediate price cut for May.”
Dairy Crest farmers have been promised they will not receive any fall in the standard liquid price for May and June.
And while First Milk has not announced any price change for June, its board is due to meet this afternoon.