News that Arla Milk Link is cutting its farmgate milk price will come as a "bitter and unacceptable" blow to its farmer suppliers, the National Farmers Union has warned.

Arla Milk Link, which was formed following the acquisition of Milk Link by Arla Foods, announced this week it is reducing the price it pays for milk by 0.23 ppl in order to offset fluctuations in currency exchange.

Responding to the move, NFU dairy board chairman, Mansel Raymond emphasised that the price cut comes at a time when farmers are already struggling with rising production costs.

"We urge Arla Milk Link to urgently seek ways to further mitigate against the damaging short-term effects of the transitional milk pricing formula, on these already beleaguered farming businesses," he commented.

The NFU said it is seeking "urgent discussions" with Arla Milk Link.