Dairygold has reduced milk price for April by 2c/l for all milk supplied at 3.3% protein and 3.6% fat.

It announced on Tuesday that it will pay suppliers 38.09c/l, excluding VAT but inclusive of sustainability and quality bonuses.

A company spokesperson said that the decision was based on the continued weakness in global dairy ingredient markets over the last number of weeks.

"This is driven by a reduction in demand in certain markets and products driven by previous high prices.

"There are some indications that markets are stabilising, but it remains to be seen if this is sustained across peak supply.

"The Dairygold board will continue to monitor markets closely and review milk price on a month-by-month basis," the spokesperson said.

Competitors

So far, Lakeland Dairies is the only other co-op to announce a milk price for April.

Last week, the Cavan-based co-op cut its April milk price by 3.8c/l on the March price.

Suppliers in the Republic of Ireland saw their price fall below the 40c/l mark to 37c/l, excluding VAT.

The balance of global supply and demand remains outweighed by a stronger level of supply, with reduced market returns a

continuing factor based on modest demand from buyers, a Lakeland Dairies spokesperson said.