Lakeland's March price is 23.23c/l excluding VAT at 3.6% fat and 3.3% protein, compared with 24.12c/l in February. The co-op had last cut its milk price in January.

The announcement came hours after Ornua's PPI index of dairy commodity prices fell for the 12th consecutive month.

TJ Flanagan, dairy policy executive with the co-ops representative body ICOS, said earlier in the day that a combination of a lower income and higher expenses on inputs due to the poor weather so far this year could lead to a 30% drop in dairy farm incomes this year.