Milk prices are under sustained pressure globally as rising production in key dairy regions continues to outpace demand. The imbalance has triggered a steady fall in returns across butter, cheese, and milk powder categories.
According to the Irish Farmers Journal, milk output in major producing countries such as the US and Europe has increased by up to 5%, pushing commodity values lower. The Ornua Product Price Index fell to 42.6 c/L in September, with butter prices dropping by nearly €400–500 per tonne.
Although farm-gate prices typically lag commodity shifts, cooperatives have already started to adjust. In Ireland, milk prices are now averaging around 42 c/L, marking a 7% decline since spring.
Industry analysts warn that farmers must brace for tighter margins. Experts recommend focusing on cash-flow planning, grass utilisation, and input cost control to withstand market volatility. Maintaining liquidity reserves estimated at €600 700 per cow may also help buffer early-season financial strain.
As the global milk supply remains strong, the outlook suggests continued price pressure. For dairy producers, the challenge lies in balancing production growth with disciplined cost management to safeguard profitability in a softening market.
