Dairy Crest have announced a price reduction of 1.2p/litre from 1 February 2015 for liquid and cheese milk prices.

Farmers on Davidstow contracts will now get 26.59p p/litre and the liquid milk price for farmers with all or a proportion of their milk price on the standard liquid contract will be 24.59p/litre.

The company blamed the cut on a sluggish dairy market and said they have been forced to reflect this in the February milk price.

The price cut follows a 1.25p/litre cut announced in December for January 2015.

In November of this year, the company announced it was selling its liquid milk operations to Müller UK & Ireland Group in a deal worth £80m.

See also: Arla starts new year with 2p/litre price cut