First Milk will slash its October milk price by one pence per litre, citing tougher trading and market conditions after a spell of stability.
The UK-based co-operative said the move reflects mounting pressure on returns, despite months of steady prices.
The reduction, which applies from 1 October 2025, brings the price for a standard manufacturing litre, including the member premium, to 43.85ppl.
"After a period of relative stability, trading and market conditions are now becoming more challenging which is affecting our overall returns, necessitating this reduction to our October milk price.
"We remain focused on maximising returns for our members," said Mike Smith, farmer director and vice chairman of First Milk.
The latest cut highlights the difficult balance between market pressures and ensuring sustainable returns for producers.
The co-operative, which is wholly owned by British dairy farmers, said it remains committed to supporting its members while navigating increasingly volatile markets.
