Co-ops slash October milk prices citing oversupply in global market
Lakeland Dairies, Tirlán, Carbery, Dairygold and Kerry Dairy Ireland have all announced their October milk prices.Â
Co-ops have decided to slash their October milk prices, with Lakeland Dairies and Tirlán amongst the highest reductions of 4cpl.
All co-ops have cited oversupply in the global market, surpassing current market demand and weakening pricing, as reasons for their drops.
Lakeland Dairies was one of the first to issue its October milk price. It decided to reduce the milk price by 4cpl on the price paid in September.
A price of 40.25cpl (3.6% butterfat and 3.3% protein) will be paid to Lakeland Dairies suppliers for its October milk. This is inclusive of the 0.5cpl Sustainability Incentive Payment.
A spokesperson for the co-op cited market pressures: “Significant market pressure persists as global milk supplies continue to grow from an already strong base. Demand is struggling to keep up, which is impacting on butter, cheese and powder returns, adding continued pressure on farm gate prices.”Â
Tirlán has also announced it is dropping its October base milk price by 4cpl. Tirlán’s new base milk price for October is 37.58cpl, including Vat.
With the inclusion of the Sustainability Action Payment, qualifying suppliers will receive a 38.08cpl, including Vat, for October creamery milk supplies at 3.6% butterfat and 3.3% protein.
The base price and Sustainability Action Payment will be adjusted to reflect the actual constituents of milk delivered by suppliers. The actual average price paid by Tirlán for October creamery milk, based on delivered constituents, will be 51.30cpl (including Vat).
Tirlán chairperson John Murphy said: “The sharp reductions in market returns since mid-August require us to continue to adjust our farm gate price in order to bring it to the appropriate level.
"We fully appreciate the concern the rapid market downturn is causing for our farm families and will continue to work to mitigate the impact in so far as is possible. We are particularly conscious of our liquid milk suppliers and our autumn calving scheme members, as well as all other farmers who supply valuable fresh milk over the winter period.”Â
Tirlán has established seasonality bonus payments will apply over the winter months of December, January and February on all non-contracted milk volumes that meet quality criteria.
The payment rates for qualified milk volumes are 5cpl for December, 7cpl for January and 5cpl for February. Unconditional Seasonality Bonus payments will be adjusted to reflect the actual constituents of the milk delivered.
Carbery has announced a milk price reduction of 3.5cpl for October milk supplies.
If this decision is replicated across the four West Cork co-ops — Bandon, Barryroe, Drinagh and Lisavaird — this will result in an average milk price of 42.6cpl, inclusive of Vat, 0.5cpl Somatic Cell Count (SCC) bonus and FutureProof sustainability bonus.
The base milk price adjustment, SCC and FutureProof bonus figures above are quoted excluding Vat. The FutureProof bonus currently available for 2025 has increased by 0.25cpl to a total of 1.25cpl.
A spokesperson for the group said strong global supply is outpacing consumption and weakening prices: “This, in turn, impacts the returns we can make on our products.”Â
“While we will make every effort to pay the best price we can based on market returns, we will also prioritise business decisions that maximise shareholder value in other ways,” the spokesperson added.
Dairygold has reduced the October quoted milk price by 3.25cpl.
Based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality payments and Vat, the October milk price is 38cpl.
An average October farm gate milk price of 51.1cpl, based on the average October 2025 milk solids, was achieved by Dairygold milk suppliers. The quoted milk price for October, based on EU standard constituents of 3.4% protein and 4.2% butterfat, is 41.6cpl, inclusive of Vat.
Dairygold chairperson Pat Clancy said: “This ongoing imbalance between supply and demand continues to negatively impact butter, cheese and milk powder returns, which is reflected in the futures markets for the foreseeable future.
A change in the fundamental supply and demand dynamics is necessary to alter the current market outlook.”Â
Kerry Dairy Ireland has dropped its October milk price by 3cpl from the September price. Kerry Dairy Ireland milk price for October milk supplies is 41cpl, including Vat, quality and sustainability bonuses.
At EU standard constituents of 3.40% protein and 4.20% butterfat, the milk price is 44.84cpl including Vat.
Based on the average milk supply in October, the milk price return inclusive of Vat and bonuses is 52.67cpl.
A spokesperson for the company said: “Market sentiment remains subdued as global milk production continues to outpace demand. It has been some time since the growth in supply has so clearly exceeded the growth in consumption.”
