The board of Lakeland Dairies has announced a cut to the milk price it will pay for August supplies, as the co-op claimed that strong milk supplies in all markets are putting prices under downward pressure.

Lakeland Dairies’ suppliers are to receive a base milk price of 44.48c/l excluding VAT, with qualifying suppliers to receive an additional 0.5c/l sustainability incentive payment.

August’s base quoted price represents a 0.95c/l excluding VAT decrease on the equivalent for July.

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Suppliers in Northern Ireland are to be paid 38.3p/l including a sustainability incentive payment, a drop of 1p/l on the previous month.

“Prices are facing downward pressure, driven by very strong milk supply in all markets and a weakening in consumer demand, caused by inflation and lower spending power,” Lakeland Dairies said on announcing its price.

“Trade and market confidence are also being affected by geopolitical tensions.”

The co-op said that it will continue to monitor dairy markets and endeavour to support its farmers with the best milk price possible in line with prevailing market conditions.