Dairygold confirms further reduction in milk price for September
Dairygold has today (Monday, October 20) become the latest processor to reduce milk price for the month of September.
The Dairygold board has reduced the September quoted milk price by 3.75c/L to 41.25c/L, based on standard constituents of 3.3% protein and 3.6% butterfat.
This price is inclusive of sustainability and quality payments and VAT.
The September milk price equates to an average September farm gate milk price of 52.6c/L, based on the average September 2025 milk solids, achieved by Dairygold milk suppliers.
The quoted milk price for September, based on EU standard constituents of 3.4% protein and 4.2% butterfat, is 45.1c/L, inclusive of VAT.
Dairygold
Commenting on the board’s decision, Dairygold chairperson, Pat Clancy said:
“Global dairy market prices have dramatically deteriorated in the past two months, with butter prices decreasing by more than €1,600 per tonne (-23%) and cheddar prices falling by over €800 per tonne (-18%).
"The combined market price reductions for butter and skim milk powder and cheddar exceed the cumulative 6.75c/L milk price corrections applied by Dairygold in August and September. Current market returns are less than 40.0c/L
"The timing of the market downturn presents significant challenges, occurring immediately after peak milk processing, where high levels of stock, especially cheese, are now exposed to a declining market.
"Dairygold has produced a high volume of cheese, with milk purchased earlier in the year at substantially higher prices, than this product will now realise in the marketplace.
"Therefore, Dairygold had to react quickly, and consequently this has required a considerable milk price correction over the past two months," the Dairygold chairperson said.
Clancy added that "while the September milk price is still above current market returns, we recognise that the reduction is very significant".
"However, the board has a responsibility to protect the longer-term sustainability of the business and must reflect the significant value drop in its market returns.
"Dairy market supply and demand fundamentals need to shift to change the current market position, but unfortunately, futures markets are still declining for the remainder of the year, with the prices quoted for both butter and cheese for December 2025 below current levels, and further milk price corrections will be required.
"The Dairygold board continues to monitor markets closely and will review milk price on a monthly basis," he said.
