The base price guaranteed to FrieslandCampina suppliers across the Netherlands, Germany and Belgium for June is €30.5 per 100kg of milk, down €1.5 on this month's. This is equivalent to a 1.5c/l cut.

After three straight months of cuts, the co-op's guaranteed price is again edging closer to the €30/kg limit, which was not broken after the latest series of cuts at FrieslandCampina in the second half of last year.

"The reduction of the guaranteed price is based on the expectation that milk prices of most reference companies in June will continue to decline," the co-op said in a statement. "This is caused by decreasing quotations of various dairy products because of an increasing milk supply and a declining demand for dairy products."

FrieslandCampina's guaranteed price applies to 100 kilogrammes of milk with a protein content of 3.47%, a fat content of 4.41% and a lactose content of 4.51% and is exclusive of VAT.