Arrabawn has confirmed today (Saturday, August 19) a cut in its milk price for July, from a base price of 39.69c/L in June to 38c/L this month, including VAT.
This is based on 3.3% protein and 3.6% butterfat for July milk supplies.
According to Arrabawn the price equates to 41.22c/L, including VAT at EU standard constituents 3.4% protein and 4.2% butterfat.
Arrabawn’s average price for July, inclusive of VAT and bonuses is 40.79c/L compared to the average cost for June, which was 41.26c/L.
The Co. Tipperary-headquartered co-op stated that dairy markets “continue to remain weak”.
“Arrabawn will continue to monitor the markets in the coming weeks,” it stated.
Arrabawn is just the latest major processor to announce a drop in prices this week.
Carberry yesterday confirmed that it has also reduced its base price for July by 2c/L.
In a statement, Carbery said that it is continuing to support milk price from its stability fund and is allocating 3c/L support for July milk.
Tirlán also confirmed this week that it will reduce the price it will pay for milk supplied in July by 2.5c/L on the June price.
The processor also warned that global dairy markets continue to “weaken”.
The co-op has confirmed that it will pay a total of 35.58c/L (including VAT) for July creamery milk supplies based on 3.6% butterfat and 3.3% protein.
Dairygold reduced its July price by 2.0c/L to 36c/L, while Kerry Group said that it will pay suppliers a base price of 34c/L for July milk, plus a milk contract payment of 3c/L on qualifying milk volumes.
Lakeland Dairies has also confirmed that it will reduce the price it will pay for milk supplied in July in both the Republic of Ireland and Northern Ireland.
It will pay a price of 35.5c/L for milk at 3.6% butterfat and 3.3% protein for July milk in the Republic of Ireland.
This represents a reduction of 1.85c/L on the June price.