Glanbia has dropped its milk price for July supplies by 1c/l.
Member milk suppliers will receive 27.9c/l excluding VAT for milk supplied at 3.6% butterfat and 3.3% protein.
A support bonus of 0.5c/l will continue to be paid for July milk supplies.
Members received 28.9c/l excluding VAT for milk supplied in June.
Demand for some dairy products is subdued in a number of markets
“Glanbia Ireland’s milk price for July has been adjusted due to weaker dairy market returns, particularly for butter.
While milk production in key regions such as the US and the EU is at lower levels than last year, demand for some dairy products is subdued in a number of markets.
"The board will continue to monitor developments on a monthly basis.
"Suppliers should note that current milk prices do not fully reflect the weaker dairy market," Glanbia chair Martin Keane said.
The Ornua purchase price index (PPI) for July 2019 has fallen to 104.0.
This is a farmgate equivalent price of 30.9c/l including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/l.
A spokesperson for Ornua said that the "adjustment for July reflects sharply weaker butter prices, partially offset by improved powder prices and flat returns for cheese".
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