"Green shoots of recovery" are visible on milk prices, dairy farmers have said.

The Irish Creamery Milk Suppliers' Association (ICMSA) said that while "green shoots of grass were in short supply on farms across the country this summer, it has certainty been a different case on milk markets".

ICMSA dairy committee chair, Noel Murphy said there has been a "staggering" 13c/L difference in milk price paid to farmers for the first six months of 2026 compared to 2025, essentially "wiping out" all farmer profits. 

Murphy said that was "even before the increased costs associated with drought and the conflict in the Persian Gulf were factored into considerations". 

'Horrendous'

Murphy said that 2026 has been a "horrendous year for dairy farming".

“ICMSA is a careful and prudent observer of international dairy markets, but we do see green shoots of recovery already on milk spot markets," the dairy chair said.

"Starting from the low point in January when we saw prices in the of low 30s for spot prices on Dutch dairy quotations, prices have increased around 10c to present with a notable rollercoaster period between March and June before finally showing only a positive trend since June to now.

“Those last three months have seen whole milk powder increase by 8c/L and industry standard butter/skim milk powder mix increase by 4c/L.   

Murphy said this should be paid by co-ops to farmers.

"Bills are piling up on dairy farms, and they need a confidence boost after what has been a very difficult period," he said.

"The prices, trends and sentiment are only pointing in an upward trajectory and co-ops and milk purchasers need to acknowledge and recognise this by increasing August milk prices.

"The increase is there in the marketplace, and it needs to be sent back to the farmer suppliers immediately."

Lakeland milk price

Lakeland Dairies was the first processor to confirm its August milk price.

The processor will pay a base milk price of 39.1c/L (based on standard constituents of 3.6% butterfat and 3.3% protein) including VAT for August milk in the Republic of Ireland.

Lakeland said this is inclusive of the 0.5c/L Sustainability Incentive Payment.

The milk price for August marks an increase of 0.6c/L on July.

The average payout will be 44.7c/L, Lakeland told suppliers.

In Northern Ireland, a base price of 31.4p/L will be paid for milk supplied in August which is also inclusive of the Sustainability Incentive Payment.

This is an increase of 0.5p/L.