Muller has cut standard litre prices for April by 1.35ppl, pointing to forecasts of ’unprecedented levels of farm milk production’ in spring and weak market demand.
The announcement, which will take prices to 20.36ppl comes amid a raft of cuts from the UK’s major milk processors. First Milk and Dairy Crest both announced changes to farmgate milk cheques in recent days while Arla has handed 12 months’ notice to its direct supply farmers.
Speaking about Muller’s price announcement, Lyndsay Chapman, agriculture director for Müller Milk & Ingredients said: "In the current environment where the supply of milk from farms is substantially out of line with demand, there are no winners in the dairy supply chain.
"Market returns are depressed and milk production forecasts for April suggest the months ahead are going to be very challenging for us all."
The move, which will take effect from April 1, follows a 1ppl cut in prices for Muller farmers which from February 15.
Ms Chapman said the firm was committed to maintaining a fair and market-related price and honour its contract terms.
Last month Tesco confirmed it was switching a significant volume of milk supply from Arla to Muller.