The first milk prices set for the month of December have continued in the wrong direction, with further significant drops.

Both Lakeland Dairies and Kerry Dairy Ireland (KDI) cut their milk prices for last month’s supplies by 2.87c/l excluding VAT.

This marks the fifth month of notable reductions in milk price.

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Lakeland Dairies set December’s base milk price at 31.82c/l excluding VAT with an additional 0.48c/l excluding VAT of a sustainability payment due to qualifying suppliers.

The co-op also announced that a 0.29c/l excluding VAT loyalty top up is to be paid out on all volumes delivered in 2025 to assist suppliers in dealing with “current market challenges”.

Kerry

Meanwhile, KDI will pay a base price of 31.67c/l excluding VAT for December’s milk.

Based on Ireland’s average milk solids for December, the milk price return inclusive of quality and sustainability bonuses is 42.44c/l excluding VAT.

A spokesperson for KDI said: “Muted demand from the food service sector continues to exert downward pressure on the dairy market.”