Arrabawn Tipperary Co-Op has announced a reduction in the price paid for farmers for milk supplied in August.

The Arrabawn Tipperary Co-Op board has approved an August milk price of 46.89c/L including VAT and a 0.75c/L sustainability payment.

The co-op's average payment will be 52.89c/L, according to Arrabawn Tipperary.

It follows a trend of reduced milk prices from processors for August milk.

Yesterday (Wednesday, September 17), Dairygold confirmed that it would reduce its August quoted milk price by 3c/L to 45c/L.

The processor said the price is based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality payments and VAT.

This compares to a price announced last month for July milk of 48c/L.

The August milk price equates to an average August farm gate milk price of 52.7c/L, based on the average August 2025 milk solids achieved by Dairygold milk suppliers, the processor.

Commenting on the notable reduction in milk price, Dairygold Pat Clancy: "There has been a dramatic deterioration in global dairy prices over the last three to four weeks.

"Increased global milk supply and weaker consumer sentiment have seen key Dairygold products, especially butter and cheese, fall by well over 3c/L," Clancy added.

"The speed, timing and extent of the market falls is challenging, as they emerge after the peak processing period, with seasonally higher stock levels exposed to these declining market returns," the Dairygold chair said.

The Dairygold price reduction has drawn the ire of farming organisations, with the Irish Creamery Milk Suppliers' Association (ICMSA) saying the cut was "unjustified and unwarranted".

ICMSA dairy chair Noel Murphy said the reaction to the price cut among dairy farmers has been "overwhelmingly negative".

He called on the board of Dairygold to reconsider its price for August milk.

Murphy said: "While dairy markets have weakened in recent weeks, August was a relatively stable month and the ICMSA's firm view is that milk price should be at least 47c/L for the month."