Dairygold will pay suppliers a base price of 29.6c/l, excluding VAT, for February supplies of milk. This is a cut of 1c/l on the January price.

This price includes a 0.65c/l VAT inclusive bonus for quality and sustainability based on standard constituents of 3.30% protein and 3.60% butterfat.

"Dairy markets have retreated, with butter returns falling and while protein returns have increased, they are not compensating for the fall in butter returns," a spokesperson for the company said. "The Dairygold board reviews milk price on a monthly basis. The society has supported milk price over market returns for many months which is not sustainable. Unfortunately, it is now necessary to bring milk price closer to market returns."

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Other processors

Three out of five processors have cut milk prices for February supplies so far.

Aurivo held its price at 28.93c/l excluding VAT for February supplies, it announced on Friday.

Kerry cut its price by 1c/l and Glanbia suppliers will receive 0.5c/l less than they did in January.

Lakeland held its price at 30.4c/l excluding VAT, but cut by 0.75p/l in Northern Ireland.

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Aurivo sets February milk price

Milk prices cut for February