Dairy giant Muller has confirmed that it will hold the milk price it offers to its farmer suppliers at the current level for May and June.
The processor said it would keep its milk price at 26.25p per litre despite a dramatic decline in returns from markets for bulk cream and butter as the Covid-19 pandemic continues.
The processor said it had hoped to increase its Muller Direct base price by 1p per litre from 1 May but a 'rapid decline' in returns from commodity dairy products made it 'unviable to proceed'.
Rob Hutchison, Operations Director at Müller Milk & Ingredients said the coronavirus challenges facing the dairy sector are 'well known'.
"As we head closer to the spring flush when farm milk production peaks there is more milk being produced on farms than there are markets for it.
"This is having a profound effect on the value of dairy products like bulk cream and butter," Mr Hutchison explained.
“Our core focus on the retail sector and determination to maintain our obligations to feed the nation will continue and whilst we are not immune from dramatic dairy market changes, we aim to provide as much stability as we can during this extraordinary period.”
It comes just days after Arla Foods announced it would cut its May milk price to 29.89ppl as the dairy market entered 'unprecedented territory' due to the Covid-19 crisis.