Dairygold has reduced its October milk price amid deteriorating international dairy market fundamentals, signalling persistent pressure across Europe’s commodity-driven supply chain. The cooperative attributed the decision to a prolonged period in which global milk supply continues to outpace demand, creating an unfavourable pricing environment for major exporting regions.
According to chairperson Pat Clancy, “dairy market sentiment remains weak” as strong production growth across all major suppliers intensifies competition and suppresses returns. This imbalance is directly weighing on high-volume ingredients, with butter, cheese and milk powder prices experiencing sustained downward pressure. Futures markets are also pointing to continued softness, reinforcing expectations that commodity values are likely to remain subdued for the “foreseeable future.”
At the farm level, the price adjustment translates to an average milk price of 51.1c/L for Dairygold suppliers in October, based on their achieved milk solids. Using the European Union’s standard composition metrics of 3.4% protein and 4.2% butterfat, the quoted price equates to 41.6c/L including VAT. The revised benchmark highlights the scale of the challenge facing processors and producers alike as global oversupply continues to erode margins.