Dairygold has cut its July milk price by 1c/l, bringing the base price for July supplies to 28.16c/l, excluding VAT.
Over the last number of months, dairy markets have been challenging and uncertain, with butter returns falling significantly, far outweighing the marginal increases in powder prices, a Dairygold spokesperson said.
“The weakness in butter prices has been caused by excess supply over demand. More recently, cheddar cheese returns have been negatively impacted, primarily due to the uncertainty over Brexit.
“Regrettably, a downward milk price adjustment is necessary.
"Dairygold will continue to monitor market developments on a monthly basis and remains vigilant with regard to maximising the commercial return and ensuring operational efficiency.”
Dairygold is the latest processor to cuts its July milk price. Last week, Glanbia, Kerry, Aurivo and Lakeland all cut their prices.
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