Arla's milk prices will take another fall from 1 June as the co-operative announced a 1.78p per litre decrease.
The dairy co-op's milk prices for next month will decline for both conventional and organic milk, to 35.21ppl and 40.88ppl respectively.
Arla warned that the retail sector was under pressure as consumers continued to buy less and cheaper dairy products due to the cost-of-living crisis.
The co-op, which is supplied by 3,000 UK farmers, added that the foodservice sector was also impacted by consumers holding back and was not yet back to pre-pandemic levels.
“Global milk supply continues to grow, though at a slower pace than in recent months," said Arla Foods director, Arthur Fearnall.
"Commodity markets are stabilising and retailers have started to adjust prices - the outlook is stable as the market is finding its balance.
"Consumer purchasing power will increase as inflation softens and wage increases kick-in. However, uncertainty remains to future purchasing behaviour.”
Paul Savage, agriculture director for Arla UK, added farmers were still facing historically high on-farm costs.
"However, last week’s ONS figures were a welcome relief and while the squeeze on consumer expenditure will continue, it is positive to see the market move towards stabilisation.”
Earlier this month, First Milk announced a milk price decline for June, by 1.40p per litre.
The move means its milk price on a manufacturing standard litre will sit at 37.89p per litre, including the member premium.
Meanwhile, the UK’s largest independent processing dairy unveiled a significant drop in its June prices.
Freshways, a dairy processor which supplies hotels, airlines and the food industry, will slash its milk price by 3p per litre.
