UK dairy company Dairy Crest will again cut the price it pays farmers for raw milk next month.

From the beginning of May the group will cut its milk-for-cheese price by 0.5 pence per litre and standard liquid price by 0.85pence per litre

“Today’s announcements are in direct response to the challenging environment we face,” Dairy Crest milk procurement director Mark Taylor said.

“We have had to take action to remain competitive in the current market place, but in reaching agreement with DCD [Dairy Crest Direct] on the level of price reductions, we have taken into account the pressures facing our direct suppliers.”

Liquid milk prices have deteriorated globally as demand for dairy products has fallen and the market is faced with oversupply.