Arla Foods is decreasing its milk price to owners by 0.42 pence per litre from 1 April, ending seven consecutive months of rises.
The Arla Foods on-account price has decreased by one eurocent per litre which equates to a reduction of 0.79 pence per manufacturing litre.
However, a positive currency impact of 0.37ppl from 1 April, mitigates the full impact of the reduction.
Commenting on the decision, Arla Foods amba board director, Johnnie Russell, said: “We are extremely disappointed to be in a position of having to reduce our milk price to our owners, after seven consecutive increases.
“During that period, we have delivered an additional £76 million in milk price increases to our owners since September 2016. The reduction in our April price is unwelcome news.
“Over recent weeks, the reduction in commodity prices has impacted yellow cheese, protein and spot market prices and this is putting pressure on the European market in particular. International value added markets on the other hand seem to be more stable.”
