Danish-based dairy cooperative Arla has announced fresh price cuts for its suppliers, set to take effect from May.

Arla Foods amba is cutting its on-account price for members by 1 euro cent per kg. For producers in Britain, this will amount to a 0.75 pence cut, taking the standard price per litre down to 20.12 pence. The cut will take effect from 1st May.

Those on a direct contract will see prices fall by 0.9ppl, meaning milk prices will drop to 15.1ppl from June.

In a statement on the price cut, Arla blamed the continued supply and demand imbalance on the market for the decision. Executives said this has led to further pressure on prices of dairy commodities around the world.