Irish dairy co-operatives have announced significant milk price cuts for September, citing global oversupply and falling market returns, especially for butter and cheese.
Tirlán confirmed a September price of 42.08c/L (including VAT), down 4c/L on August, including a 0.5c/L Sustainability Action Payment. The average price paid on solids is 53.79c/L/L. Chairperson John Murphy said supply is “outpacing demand”, with cheese and butter prices seeing sharp declines.
Dairygold cut its price by 3.75c/L to 41.25c/L, noting that market returns are now below 40c/L, and warning of pressure from high cheese stocks. Lakeland Dairies reduced its price by 3c/L to 44.25c/L, while Kerry Dairy Ireland and Carbery also announced cuts of 3c/L and 2c/L, respectively.
Retail milk prices are also falling, but industry sources dismiss claims of a price war. With milk production still rising across Europe, co-ops are signalling more difficult months ahead for suppliers.
