Meadow Foods will decrease its 'A' milk price by 1.25 pence per litre to 29.75ppl from January 2018.
The UK’s largest independent dairy said due to increased milk volumes leading to negative pressure, the group decided on a decrease.
It follows news of Muller slashing its January 2018 milk price by 1.5p per litre to 29p.
Meadow Foods chief executive Mark Chantler said: “We regret that the sudden and marked downturn in milk prices have required us to move our price to reflect these market conditions.
“We have however been working to ensure that we are now far better placed to manage a downturn, focusing on developing our sales to achieve more products sold into premium contracts.
“This should help reduce some of the effects of market volatility, however we will continue to monitor the situation very closely going into the New Year.”
