First Milk has become the latest processor to announce a substantial milk price fall for March, declining by 4p per litre.
The move means its milk price on a manufacturing standard litre will sit at 45.69p per litre, including the member premium.
The UK dairy co-operative said there was the "biggest disjoint ever" between market prices and current farmgate milk prices.
Robert Craig, First Milk's vice-chairman, said the sentiment in global dairy markets had been weakening for some time.
"This has accelerated significantly since the beginning of January, and we are now seeing week-on-week reductions in dairy market prices.
"We are also seeing probably the biggest disjoint ever between market prices and current farmgate milk prices.
“We have been pleased to hold milk price up until this point, providing some stability through the winter period, but we are not immune to market forces and, whilst disappointing, we must adjust our milk price to reflect market movements.
“We recognise that this will be unwelcome news and we will continue to do all we can to reduce the speed and impact of the falling market for our members.”
Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will also see a March milk price decline, of 3ppl.
Those producers who follow the programme will see their milk price fall to 44 pence per litre.
It follows recent analysis by AHDB which said that milk prices are set to change direction this year following record-breaking price increases in 2022.
Changes to milk prices for the start of 2023 have been downwards, with just one exception, and are the first reductions in almost two years.
Assuming the typical lag of three-four months, prices are projected to see further cuts into the spring, the levy board said.
