The Dairygold board has decided to reduce the August quoted milk price by 3c/L to 45.0c/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 quoted milk price for August, based on EU Standard constituents of 3.4% Protein and 4.2% Butterfat, is 49.2c/L, inclusive of VAT.

Commenting on the board’s decision, 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.

"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.

"Meanwhile, Dairygold continues its focussed reduction in spend, including capital expenditure, and delivering our business optimisation programme to deliver optimum efficiency, cost competitiveness and margin enhancement.The Dairygold Board continues to monitor markets closely and will review milk price on a monthly basis," Clancy added.