The board of Dairygold will meet with members next week to discuss the drop in the processor's milk price for August.

Agriland understands that the Dairygold board and management are convening a member information meeting on Thursday of next week (September 25) in the Firgrove Hotel, Mitchelstown Co. Cork.

The meeting is set to begin at 2:00p.m.

This week the Dairygold board decided to reduce its August quoted milk price by 3c/L to 45c/L.

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

The processor said that the 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 decision to decrease price by 3c/L has drawn the ire of farm organisations, who described the cut as unnecessary.

In a message to members, the board said that the purpose of the meeting next week is to provide a business update; to address any queries that members may have; and to explain the rationale for the August milk price decision.

It is understood that registration for this meeting will commence from 1:00p.m, with the meeting to begin at 2:00p.m.

In announcing the milk price this week, Dairygold chairperson Pat Clancy said: "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.

"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," Clancy added.

"There is evidence in the marketplace of inventory being off-loaded, putting further pressure on returns. Dairy market futures show no immediate signs of recovery over the coming months, and our priority now must be to take decisive action and realign our milk price with market returns," he said.