NFU dairy board chairman Michael Oakes said although the price reduction was disappointing, he was pleased that the UKAF board had recognised the fragility of UK members and decided to act accordingly by bringing forward the benefit of the currency smoothing mechanism to negate the impact of the Arla AMBA milk price drop.
The conventional standard litre price in the UK will remain at 28.13ppl.
Mr Oakes said: “Although we have seen improvements in dairy markets since the lows of last year, many dairy farmers remain in an extremely fragile place. They lack confidence in the future of the sector - compounded further by the impact and uncertainty of Brexit and the forthcoming General Election.
“All dairy farmers need a period of stability to recover from the downturn and prepare for the future. That’s why we need to look at new ways of managing risk and sharing reward.”