Lakeland Dairies has cut its August milk price by 0.75c/L to 26.25c/L after the co-ops board met last week.

This latest cut follows a cut of 1c/L for July milk and another 0.75c/L cut for June milk.

Lakeland is the first co-op to announce an August price for milk and it comes after most processors cut their July milk price.

According to the latest figures from the Milk Market Observatory (MMO), milk prices are set to fall again for August returns.

The average farmgate milk price across the EU has fallen over 20% in the last 12 months and the latest MMO statistics suggest that it will fall a further 1.3% for August supplies.

The MMO figures also estimate that on average Irish milk prices will fall by 1.3% for August returns to just under 26c/L.

Irish farmgate milk prices in June were 23% lower compared to June 2014.

Falling milk prices however, have failed to dampen Irish milk production with creameries and pasteurisers taking in 12.2% more milk in July 2015 compared to 2014, the Central Statistics Office (CSO) has said.

Domestic milk intake by creameries and pasteurisers was estimated at 772.0m litres for July 2015, the CSO figures show.

Comparing the July 2015 milk produce figures with those for July 2014 shows that total milk sold for human consumption increased by 8.4% to 43.1m litres.

Butter production was up 20.8% year-on-year to 24,500t, according to the CSO.