The farmgate price paid by Lakeland Dairies is now 26.25c/l including VAT, down from 27c/l in July.
The co-op had already applied a 1c/l price cut last month, in line with most processors.
On Tuesday, Ornua's purchasing price index (PPI) based on a basket of dairy commodities showed a slight decrease, with its August level equivalent to a return of 29.96c/l for farmers.
“This would help co-ops hold their August milk price," argued the IFA's National Dairy Committee chairman Sean O'Leary.
The latest Global Dairy Trade auctions and European Milk Market Observatory reports also indicated that global prices may start to recover after sustained falls since the spring.
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