Muller UK & Ireland has announced that it will reduce the price it pays for milk by 0.8p per litre (ppl) from September 7th to 22.35ppl. The company says the reduction reflects a continuing softening in the market value of farm-gate milk due to very high levels of supply from farms in the UK, coupled with weak global demand.

Analysts suggest that dairy farmers in Britain have increased the supply of milk by 1.6bn litres in the last 12 months compared with the same period two years ago. The additional annual volume placed on the market represents an extra 80,000 farm tanker loads, the equivalent of more than 40 pints of milk for every head of population in the UK.

* Meanwhile, Scotland's Rural Affairs Secretary Richard lochhead has written to his ministerial counterparts across the UK calling for a summit to discuss challenges facing the agricultural sector. The move echoes recent calls from the NFU that all four UK farming ministers should meet to discuss the future of the industry.

Mr Lochhead said: "It's been a tough summer for Scotland's farmers and crofters with the weather causing major challenges for production, and milk and meat prices falling.

"The difficulties we face are not unique to Scotland, particularly low milk prices that are hitting all our dairy sectors hard and where action is required at Scottish, UK and EU level. That's why I'm calling for a farming summit with ministerial counterparts across the UK so we can ensure no stone is left unturned to ensure we protect primary food production in our respective countries.

"We need to urgently consider what further appropriate help can be made available to those sectors most affected. For instance, there is no doubt that a joint approach to the chief executives of all major food retailers and food services companies to ensure a fair price is paid for Scottish and UK produce would be welcomed.

"I am already pushing for greater Scottish sourcing, but the more political clout the better when it comes to ensuring fairness in terms of prices paid.

Market round-up

The Cumberland and Dumfriesshire Farmers Mart had the largest show of prime lambs this season when 4,433 went under the hammer, an increase of 1,100 on the corresponding sale last year. Top prices on the day were £100 per head and 233p per kg with the overall average levelling at 155p (+5p on the week).

Another large offering of 4,912 cast sheep saw heavy ewes sell to £144 for Texels and average £76.82 (+£4,98), while light ewes peaked at £66 for Lleyns and Blackfaces and levelled at £44.18 (-£1.38). Rams sold to £180 for a Texel and averaged £100.50.