Arla Foods has sent out letters to all direct producers notifying them of a price cut this month. In the letter, Arla blames competitors for reducing their wholesale prices offered to retail customers, which has subsequently put downward pressure on farmgate prices. Dairy Crest recently purchased full control of the company that makes Country Life butter. Dairy Crest unveiled a deal with Associated Co-operative Creameries to acquire its 38% share in the English Butter Marketing Company.