Co-ops are setting milk price for what is the last peak month of the year.

Between last week and this, most of the co-ops will have set the price paid to farmers for June.

On Tuesday, the Glanbia board agreed a June price of 28c/litre. However, the formation of that price is not straightforward. Glanbia Ingredients Ireland (GII) cut its price from 27.5c/litre to 26c/litre – this is then supplemented by 1c/litre from its stability fund and 1c/litre from the Glanbia co-op. The Glanbia co-op support for the May price was 3c/litre.

Last Thursday, the board of Lakeland Dairies met and decided on a 0.75c/litre cut to bring its June price to 28c/litre (including VAT).

Kerry has held its June price at 28c/litre. Dairygold is expected to meet on Thursday and set its price. The west Cork co-ops as well as Arrabawn and others are due to set prices this week, while Town of Monaghan will set a price later in the month.

Yields will start to drop off as more cows come in calf. Favourable grass-growing conditions are partially alleviating cost and input pressures on farmers. However, milk price for nearly all the co-ops is hovering dangerously close to breakeven levels.

For the ninth consecutive time, the bi-monthly Global Dairy Trade auction prices have fallen, this time by 10.7%. The whole milk powder price fell by 13.1% to stand at $1,848/t, cheddar price fell 13.9% to $2,613/t while butter price fell 9.5% $2,460/t.

The GDT index now stands at 556, which is lower than 2009 levels. There were a total of 135 bidders who purchased 31,691m tonnes of product.

IFA dairy committee chair Sean O’Leary said the latest GDT was “further evidence of a global market downturn more prolonged than expected”.

“While EU market returns had remained significantly higher than GDT levels, they too are now weakening, and farmers could not be expected to take the full brunt of lower markets,” he said.