Dairy giant Muller has announced a January 2018 milk price decrease by 1.5p per litre to 29p.
The decline in price to its 700 Muller Direct suppliers comes amid a drop in the value of cream and butter in the UK over the last three months.
The decline will come as a blow to dairy farmers, who have seen increases in recent months.
Rob Hutchinson, Muller Agriculture director said: “Substantial movement in butter and cream values is now a familiar characteristic of global dairy commodity markets.
“Whilst we are disappointed to see this sharp decline, the extensive portfolio of added value dairy products we make in the UK will shield farmers from the full volatility of global dairy commodity markets.
“We will continue to offer a stable and competitive milk price at each point in the market cycle.
“In addition Muller Direct dairy farmers have access to innovative tools and support including the Muller Futures Contract and Muller Farm Insights, which provides consultancy to help improve farm resilience.”
