Carbery Group has announced its milk price for September milk, confirming that its average price is set to fall.

Carbery said that, if its milk price is replicated across the four west Co. Cork co-ops of Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average milk price of 46.31c/L, inclusive of VAT, the somatic cell count (SCC) bonus of 0.5c/L and the business' FutureProof sustainability bonus.

The FutureProof bonus for 2025 is set at 1.25c/L. The FutureProof and SCC bonuses are, unlike the overall milk price, quoted excluding VAT.

The average price is down just over 2c/L from last month's average price for August milk, which was 48.41c/L.

Announcing the latest milk price, a Carbery Group spokesperson said: "There is ongoing weakness in dairy markets, driven by increased milk supplies and subdued demand in key export regions.

"This downturn in markets continues to impact the return we can make on our products. Carbery is closely monitoring the market situation and continuing to drive business performance in other areas to support milk price.

Milk price

The latest milk price follows a trend in recent months of milk prices to farmers first stagnating, and then coming down.

This week, Kerry Dairy Ireland revealed its milk price for supplies in September, opting to reduce its offering by 3c/L.

The processor said its milk price for September is 44.53c/L including VAT, back from 47.53c/L for August milk.

The price is inclusive of quality and sustainability bonuses, Kerry Dairy Ireland said.

Based on the processor's average milk solids for September, the milk price return inclusive of VAT and bonuses will be 54.63c/L, a statement from Kerry Dairy Ireland said.

The statement said that dairy markets "remain oversupplied", and sentiment in markets is "very weak".

"Continued strong milk supplies across key producers are exerting downward pressure on commodity prices," the statement added.

"Market stabilisation and recovery will be dependent on demand picking up at lower prices to absorb surplus supply."