Danish-based Arla Foods will cut its on-account price by 1c/l from 1 December, the co-op announced this Friday.
When applied to the UK manufacturing price, this equates to a reduction of 0.89p/l, taking the UK price to 31.57p/l at 4.2% fat and 3.4% protein.
“While seasonal demand is in part enabling prices to remain relatively stable, European milk volumes are holding up better than expected and global volumes continue to grow, which has resulted in reduced market prices overall,” said Arla director Johnnie Russell.
One exception is organic milk, where the co-op still needs to increase volumes to satisfy growing demand.
The organic price will remain unchanged for Arla's continental farmers and increase by 1.79p/l in the UK.
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