The dairy giant has announced plans to reduce its standard litre price by 1p to 25.75p a litre on October 1.
However, farmers who have opted to use the company’s fixed price contract option will have their price maintained at 28p a litre.
Müller, which has operations in Shropshire at Market Drayton, Minsterley and Telford, said the price cut was a result of record levels of production by farms at a time when demand for fresh milk and other dairy products was in decline.
Rob Hutchison, milk supply director said: “This is an extremely difficult period for the whole dairy supply chain in the UK and whilst this supply and demand imbalance persists, it appears likely that market values will remain depressed.
“Müller Direct dairy farmers who chose to hedge against volatile market conditions by using our Fixed Price Option will be cushioned to a certain extent, but for the whole industry to move forward it must work more coherently and effectively together to align with the needs of customers and consumers.
“Müller is playing its part by ensuring that it has the dairy network capabilities, the fully recyclable and light-weighted packaging proposition and the herd health standards which consumers demand.
“We are confident that this will place our business and supplying farmers in a strong position as the sector emerges from this period of significant and fundamental change.”