Tirlán and Dairygold apply the largest reductions to milk price
Tirlán has made the largest drop in milk prices for September 2025, dropping the base price by 4cpl.
Tirlán and Dairygold have made the two largest reductions to September milk prices, citing a decline in butter and cheese prices as a major factor.
Tirlán have reduced its milk price in September by 4cpl, the largest drop made by a co-op this month. Tirlán will pay a total of 42.08cpl, including Vat, for September with milk supplies at 3.6% butterfat and 3.3% protein.
The milk price consists of a base price of 41.58cpl, including Vat and a Sustainability Action Payment of 0.5cpl, including Vat, for qualifying suppliers.
Tirlán have said the base price and action payment will be adjusted to reflect the actual constituents of milk delivered by suppliers. The actual average price paid by Tirlán for September creamery milk, based on delivered constituents, will be 53.79 cpl, including Vat.
Tirlán chairperson John Murphy said: “Unfortunately, milk supply growth is outpacing demand, which has weakened. Price for higher protein products, such as whey proteins, remains firm, but there have been sharp falls in the price of butter and cheese — two key products that are substantial drivers of milk price.
“The co-op understands farmers’ disappointment at this sharp fall in market returns, which we are reflecting in lower farm gate milk prices. In Tirlán, we are committed to maintaining financial discipline in order that our co-op can continue to invest for long-term growth and development on behalf of members.”
The Dairygold Board has made the decision to drop its milk price by 3.75cpl to 41.25cpl based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of Sustainability and Quality payments and Vat. The September milk price based on Dairygold milk suppliers' average September 2025 milk solids will be a farm gate value of 52.6cpl.
Commenting on the board’s decision, Dairygold Chairperson, Pat Clancy, said: “The timing of the market downturn presents significant challenges, occurring immediately after peak milk processing, where high levels of stock, especially cheese, are now exposed to a declining market.”
Mr Clancy cited the market prices, which saw butter decreasing by 23%, a drop of more than €1,600 per tonne, and cheddar experiencing a fall of over €800 per tonne (18%).
He explained the decision by saying the combined market reductions, alongside skim milk powder, exceed the cumulative 6.75cpl milk price corrections applied by Dairygold in August and September, with current market returns being less than 40cpl.
Continuing, Mr Clancy said: “While the September milk price is still above current market returns, we recognise that the reduction is very significant. However, the board has a responsibility to protect the longer-term sustainability of the business and must reflect the significant value drop in its market returns.
"Dairy market supply and demand fundamentals need to shift to change the current market position, but unfortunately, futures markets are still declining for the remainder of the year, with the prices quoted for both butter and cheese for December 2025 below current levels, and further milk price corrections will be required.”
Kerry Dairy Ireland has announced a milk price of 44.53 cpl for September milk supplies, including Vat, quality and sustainability bonuses, a drop of 3cpl on the August 2025 milk price.
At EU standard constituents of 3.40% protein and 4.20% butterfat, the milk price is 48.68cpl, including fat.
Based on average milk solids for September, Kerry Dairy Ireland has reported a milk price return inclusive of Vat, quality and sustainability bonuses, of 54.63 cent per litre.
A spokesperson for Kerry said: “Dairy markets remain oversupplied, and sentiment is very weak. Continued strong milk supplies across key producers are exerting downward pressure on commodity prices.
"Market stabilisation and recovery will be dependent on demand picking up at lower prices to absorb surplus supply.”
The Carbery group has announced a 2cpl drop from the August price for their September 2025 milk price.
If the decision is replicated across the four West Cork co-ops, Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average milk price of 46.31cpl, inclusive of Vat.
The 0.5cpl somatic cell count (SCC) bonus and the 1.25cpl FutureProof sustainability bonus figures exclude Vat.
A spokesperson for Carbery said: "There is an ongoing weakness in dairy markets, driven by increased milk supplies and subdued demand in key export regions. This downturn in markets continues to impact the return we can make on our products.
"Carbery are closely monitoring the market situation and continuing to drive business performance in other areas to support milk price.”
