Widespread Price Reductions Across Processors
Irish dairy farmers are facing milk price cuts of up to 3 cents per litre, as most major processors adjusted prices downward for December milk supplies. The reductions reflect continued pressure from surplus milk volumes and growing inventories across key dairy commodities. Among the large processors, Dairygold stood out by holding its milk price, while others moved to reduce payouts in response to market conditions.
Lakeland Dairies Implements 3c/L Cut
Lakeland Dairies confirmed a 3c per litre reduction, paying 33.25c per litre for December milk at standard constituents of 3.6 per cent butterfat and 3.3 per cent protein. The price includes a sustainability incentive of 0.5c per litre. Eligible suppliers will also receive out-of-season payments. To soften the impact of current market conditions, Lakeland announced loyalty payments on 2025 milk supplies. These payments amount to 0.3c per litre in the Republic of Ireland and 0.25p per litre in Northern Ireland.
In Northern Ireland, Lakeland’s December milk price stands at 26.3p per litre, including sustainability payments. This represents a drop of 2.5p per litre compared with November.
Surplus Supply Drives Market Pressure
Lakeland cited unprecedented surplus milk volumes and rising stock levels across dairy commodities as key reasons for the price reduction. Increased processing volumes, combined with slower sales, have intensified pressure on market returns. These conditions have limited processors’ ability to maintain previous milk price levels.
Kerry Dairy Also Reduces Milk Price
Kerry Dairy Ireland also applied a 3c per litre cut, paying 34.5c per litre (VAT inclusive) for December milk. This figure includes quality and sustainability bonuses. At EU standard constituents of 3.4 per cent protein and 4.2 per cent butterfat, Kerry’s December price equates to 37.77c per litre. Based on its members’ actual milk solids, Kerry reported a higher average return of 44.35c per litre for the month.
Demand Challenges Persist
Kerry highlighted strong milk production across Europe and subdued foodservice demand as ongoing challenges. While retail demand remains relatively stable, weaker performance in foodservice and export channels continues to weigh on dairy markets.
Outlook Remains Uncertain
With milk supplies remaining high and demand growth limited, Irish dairy farmers are likely to face continued price volatility in the near term. Market recovery will depend on improved global demand, inventory drawdowns and more balanced supply conditions.
