Arla's milk prices will take another tumble from 1 May as the co-operative has announced a 2.65p per litre decrease.
The dairy co-op's milk prices for next month will decrease for both conventional and organic milk, to 36.99ppl and 41.77ppl respectively.
Arla warned that the severity of the ongoing cost of living crisis and volatile economic environment was continuing to negatively impact consumer demand for milk.
The co-op, which is supplied by 3,000 UK farmers, added that consistently high inflation continued to drive a reduction in consumer demand.
“Global milk supplies continue to grow even though farm input costs remain at a high level," said Arla Foods director, Arthur Fearnall.
"The increased supply and reduced consumer demand is adding to the volume of milk in the commodity markets and leading to a downward pressure on price.
"However, the market is changeable and moving towards stabilisation as markets get closer to balance.”
Paul Savage, agriculture director for Arla UK, added that increasing milk volumes and a sustained decline in shopper spending continued to put pressure on the farmgate milk price.
"As a cooperative business we are committed to supporting all our farmer owners," he explained.
"In the UK this means working closely with our customers and finding new commercial opportunities to help add as much value as possible to our farmer owners milk.”
Earlier this month, First Milk had also confirmed a substantial milk price fall for May, declining by 3.40p per litre.
The move means its milk price on a manufacturing standard litre will sit at 39.29p per litre, including the member premium.
Robert Craig, First Milk's vice-chairman, admitted that the news would be 'unwelcome' for the processor's farmer suppliers.
“We are very conscious of the challenges facing dairy farming businesses arising from the speed and scale with which milk prices have reduced across the market.
"Whilst current market circumstances are unwelcome, as always, we will continue to work to maximise our members’ milk price in the months ahead.”
Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will also see a May milk price decline, of 2.5ppl.
Those producers who follow the programme will see their milk price fall to 40 pence per litre.
The world’s oldest cheddar manufacturer, Barber’s, has also announced a milk price decrease for May, to 39.1p per litre.
