Irish dairy farmers report signs of recovery in milk prices

United Kingdom (UK) 10.09.2026

The Irish Creamery Milk Suppliers’ Association says milk markets have improved after a difficult start to 2026. It is calling on co-operatives to pass the gains on to farmers through higher August payments, while Lakeland Dairies has announced its prices.

Irish dairy farmers report signs of recovery in milk prices

The Irish Creamery Milk Suppliers’ Association (ICMSA) said that milk markets were showing signs of recovery, despite limited grass supplies on farms during the summer. Noel Murphy, chairman of the association’s dairy committee, said the first six months of 2026 had brought a 13c per litre gap in the price paid to farmers compared with the same period in 2025.

Mr Murphy described 2026 as a “horrendous year for dairy farming”. He said the reduction in milk prices had effectively removed farmers’ profits, before additional expenses linked to drought and the conflict in the Persian Gulf were taken into account.

According to the ICMSA, Dutch dairy spot quotations were in the low 30s per litre in January. Prices subsequently rose by about 10c per litre, although the market moved unevenly between March and June. The association said the direction had been positive from June onwards.

Over the latest three-month period cited by the ICMSA, whole milk powder rose by 8c per litre, while an industry-standard combination of butter and skim milk powder increased by 4c per litre. The association said the market data supported an August milk-price increase of at least 2c per litre.

Mr Murphy said co-operatives should make the increase available to suppliers. He said dairy farms faced accumulating bills and that higher prices were needed after the difficult period. “The increase is there in the marketplace, and it needs to be sent back to the farmer suppliers immediately,” he said.

Lakeland Dairies was the first processor to confirm its August payment. In the Republic of Ireland, it will pay a base price of 39.1c per litre, including VAT and a 0.5c per litre Sustainability Incentive Payment, for milk with standard constituents of 3.6% butterfat and 3.3% protein. The base price is 0.6c per litre higher than in July, while the average payout will be 44.7c per litre. In Northern Ireland, Lakeland will pay a base price of 31.4p per litre, also including the sustainability payment, an increase of 0.5p per litre.