Dairygold Slashes September Milk Price: €1,600/Ton Drop

Dairygold, an Irish cooperative, has announced a major correction in its milk price for September, reducing it by 3.75c/L. This adjustment comes in response to a catastrophic collapse in the market for butter and cheddar, with butter prices dropping by over €1,600 per tonne, a 23% decrease. The cooperative's board has warned that weak futures signal further price corrections.

The new price of 41.25c/L includes all quality and sustainability payments, equating to an average farm gate return of 52.6c/L for typical September milk solids from Dairygold suppliers. Pat Clancy, the chairperson, attributed this decision to a dramatic global deterioration in dairy prices. Additionally, cheddar prices have fallen by over €800 per tonne, an 18% drop.

The market correction, while significant, is necessary according to Dairygold, to reflect the drastic value drop in current market returns, which have fallen to less than 40.0c/L. The cooperative aims to protect its long-term sustainability amid this challenging market.

Despite the correction, further adjustments seem inevitable as futures markets show continued decline. The board emphasizes the need for significant shifts in global dairy supply and demand to improve the current position, with further monitoring required as we head towards December 2025.