Dairygold has announced it will reduce its milk price from 54.5c/l to 49.52c/l, excluding VAT, for January based on standard constituents of 3.3% protein and 3.6% fat.

This is a 5.7c/l drop on December's milk price, excluding VAT.

In addition to this, Dairygold said that the January early calving bonus of 3c/l, excluding VAT, will be paid on milk supplied in January in accordance with milk quality criteria.

Therefore, milk supplied in January that qualifies for the early calving bonus will have a quoted milk price of 52.52c/l, excluding VAT.

Weak markets

A spokesperson from the co-op said dairy market prices have weakened considerably in recent months and this was caused by an increase in global milk supplies and reduced demand driven by higher inflation.

"Weakened dairy market conditions will continue to impact milk price over the coming months. The Dairygold board will continue to monitor markets closely and review milk price on a month-by-month basis," the spokesperson said.