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LacPatrick has cut its milk price by 2.5c/l for March supplies in the Republic of Ireland and by 2p/l for suppliers in Northern Ireland.
That brings the co-op down to a base price of 28.7c/l excluding VAT (30.25c/l including VAT) and 25p/l in Northern Ireland.
In all, the co-op has cut 5.5c/l off its milk price south of the border and 4.45p/l in Northern Ireland over the past two months.
Difficult decision
Andrew McConkey, chair of LacPatrick Dairies, said: "Making price cuts of any kind is always a difficult decision and a decision that is not made easily."
We must ensure that the co-op remains in a strong financial position
"We, as a board and a co-op, are very aware of the fact that spring has been exceptionally tough on farmers with fodder shortages, but we must ensure that the co-op remains in a strong financial position," said McConkey.
"The dairy markets have been exceptionally weak since the end of 2017 and the farmgate price since last October was well ahead of what was being returned from the market.
“However, it appears that we are entering the end of the current cycle of downward pressure on prices. We would hope that the very tentative signs of recovery in the markets will be rapid and that we can get back into a more positive position for all our farmers,” McConkey said.
Previous cuts
In February, LacPatrick cut the February milk price of 3c/l to 31.07c/l for suppliers in the Republic and 2.45p/l to 27p/l to suppliers in the North (excluding VAT).
However, that cut was offset for suppliers in the Republic with a 3c/l early calving bonus.
Glanbia and Lakeland
Glanbia and Lakeland Dairies also dropped their base milk prices for March, but topped it up with support payments in recognition of the challenging times facing farmers.
Glanbia dropped by 2c/l to 28.46c/l (excluding VAT), and decreased its support payment of 1c/l that it paid in February.
But the co-op is paying a top up of 3c/l, so that the farmer will receive 31.3c/l (excluding VAT) on March milk supplied at 3.6% fat and 3.3% protein. This essentially is the same as the price paid in February.
Lakeland Dairies also announced a 2.5c/l cut to its base price, bringing it to 30.42c/l (excluding VAT). However, it also announced a support payment for all March supplies, meaning that the price Lakeland suppliers receive for March milk will be 32.78c/l (excluding VAT).
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