Muller Wiseman has dropped its milk price by another 1.2p/litre, as world production keeps running above demand.
Farmers outside supermarket supply schemes will be paid 25.9p/litre from 10 January – 7.7p/litre less than they were in the spring.
The UK’s four biggest processors have all now issued cuts of more than 1p/litre in the past fortnight.
Muller UK & Ireland head of group milk supply Martin Armstrong said the returns from cream and butter sales were depressed, with the UK on course to produce an extra 1.2bn litres of milk in 2014.
He said the business had just finished a series of meetings with the 1,200 members of its supply group where they had discussed the market outlook and Muller’s strategy for growth.
Chairman of Muller Wiseman’s milk group Roddy Catto said the farmer board would continue to ensure the company was doing everything possible to support producers facing a global collapse in prices.
“The board remains extremely concerned by the continuing fall in milk price and the impact on dairy farmers and acknowledges that the company has worked to minimise the milk price reduction in terms of scale and timing,” he said.
Last month Muller Wiseman announced its plan to buy Dairy Crest’s liquid milk business and competition authorities are currently deliberating on the deal.