Cork, Ireland – Two of Ireland’s largest dairy processors, Dairygold and Kerry, have announced reductions in their August milk prices following sharp declines in global dairy markets, particularly butter and cheese.
🥛 Milk Price Adjustments
| Processor | August Quoted Milk Price | Change | Notes |
|---|---|---|---|
| Dairygold | 42.81 c/l (excl. VAT) | -2.85 c/l | Inclusive of sustainability & quality payments; based on 3.3% protein & 3.6% butterfat |
| Kerry | 45.22 c/l (excl. VAT) | -1.5 c/l | Inclusive of quality & sustainability bonuses; base price: 43.86 c/l (excl. VAT) |
💬 Industry Voices
Dairygold chair Pat Clancy cited a “dramatic deterioration” in dairy commodity prices over the past month:
“Global milk supply has increased while consumer sentiment has weakened. Butter and cheese prices are down more than 3c/l, and the timing is difficult as we enter the post-peak period with high stock levels exposed to falling returns.”
Clancy added that market futures show no immediate recovery, stressing the need for decisive alignment of milk prices with market returns. Dairygold has also begun cutting capital expenditure and accelerating its business optimisation programme to improve competitiveness.
A Kerry Group spokesperson echoed these concerns:
“EU dairy commodity prices, particularly butter and cheese, have dropped sharply. With strong milk production in major exporting regions and weak demand, prices will remain under pressure in the near term unless consumption improves.”
🌍 Global Dairy Trade (GDT) Context
The latest Global Dairy Trade (GDT) auction reinforced these trends, with the overall index dropping 0.8% – the third consecutive fall.
| Product | Price Movement | Average Price |
|---|---|---|
| Overall GDT Index | -0.8% | €3,434/MT |
| Whole Milk Powder (WMP) | -0.8% | €3,221/MT |
| Skim Milk Powder (SMP) | -0.3% | €2,222/MT |
| Butter | -0.8% | €5,858/MT |
| Mozzarella | -9.6% | €3,281/MT |
| Cheddar | +2.2% | €4,000+/MT (approx) |
📈 Analysis: Why Prices Are Falling
- Global oversupply – Strong milk output in Europe, New Zealand, and the U.S. is weighing on markets.
- Weaker demand – Cost-of-living pressures in major import markets are slowing dairy consumption.
- Inventory pressure – Surplus butter and cheese stocks are being off-loaded, depressing prices further.
- Currency impacts – Fluctuations in the euro and U.S. dollar are affecting trade competitiveness.
🧭 Outlook for Dairy Farmers
With both Irish cooperatives and the GDT index pointing downward, milk prices are likely to remain under pressure in the near term. Processors are adopting cost-cutting measures, but without stronger global demand, recovery may be delayed.
For Indian readers, this development is crucial:
- India’s dairy export competitiveness could improve if EU/UK suppliers struggle with margins.
- However, global price weakness could also affect Indian exporters of butterfat and powders.
