Lakeland Dairies and Kerry Group moved to cut milk prices for February this week, with both processors reducing their price by 6c/l.

This is the second consecutive monthly cut in milk price, with prices now down almost 12c/l on December 2022 prices.

Lakeland set a base price of 44.61c/l, excluding VAT, for milk at 3.6% fat and 3.3% protein this week.

The February price includes an input support payment of 1.5c/l, inclusive of VAT, for all suppliers.

Kerry Group will pay farmers 41.90c/l, excluding VAT, for all February milk supplied at 3.3% protein and 3.6% fat.

This is a reduction of over 5c/l from January, when the processor paid its suppliers 47.39c/l, excluding VAT, for milk supplied.

While markets firmed somewhat over the past month, this has come from a low-level base of current prices, a Lakeland spokesperson said.

“Generally weaker conditions have continued due to higher global milk supplies and fluctuating demand from dairy buyers.

“This is against a backdrop of economic uncertainty, with ongoing inflationary pressures impacting consumer, trade and manufacturing requirements for dairy products and ingredients.

“Overall outcomes remain unpredictable and there is continuing variability which will remain a feature of global markets for the immediate period ahead.”

IFA dairy chair Stephen Arthur said the IFA is disappointed in the drop in milk price.

“On the same hand we have fertiliser prices dropping almost daily and we are still expected to pay inflated feed and fertiliser prices.

“The milk price has to be sustainable in the current situation,” he said.

The ICMSA president Pat McCormack described the cuts in milk price announced since the start of the year as “absolutely horrendous”.

McCormack said that for a farmer supplying 400,000 litres to Lakeland, the drop in revenue for 2023 will be of the order of €48,000.