LacPatrick is the latest milk processor to cut its base price for February supplies. In the Republic, the co-op's board decided this Tuesday to drop its price by 3c/l to 31.07c/l excluding VAT. However, LacPatrick has decided to maintain its 3c/l early calving bonus for February, leaving the price for those who supplied milk last month unchanged at 33.92c/l excluding VAT.

In Northern Ireland, LacPatrick has cut its base price by 2.45p/l to 27p/l.

Challenging time

“It is a challenging time for markets and it is a challenging time for farmers. We have been alerting our suppliers for a number of months that the market returns are way out of line with the farmgate price," said LacPatrick chair Andrew McConkey. “We have held the price right through the winter period and we have shown a strong commitment to farmers by retaining a strong early cavling of 3c/l despite the very challenge marketing conditions."

This Tuesday's Global Dairy Trade (GDT) auction saw poor skimmed milk powder prices drag down the overall GDT index.

The announcement comes after other cuts at Aurivo last Friday and other major processors earlier this month.

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Republic milk league: LacPatrick out in front for January

Northern Ireland milk league: bonus payments put LacPatrick top in January