Glanbia will hold its March milk price for members at 33 cent per litre (cpl) including VAT.
The processor said in a statement that based on recognised indicators it is generally accepted that dairy markets are currently returning approximately 27cpl (including VAT) and have been for some time.
However, recognising the impact of recent exceptional weather conditions, Glanbia Ireland (GI) is continuing to provide support and will pay a base price for March of 30 cpl including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
In addition, Glanbia Co-op will make a payment to members of 3 cpl including VAT for March manufacturing and liquid milk supplies at 3.6pc fat and 3.3pc protein.
Henry Corbally, Glanbia Chairman, said that March had been an extremely difficult month on Glanbia supplier farms, with temperatures below normal, rainfall of more than twice the long term average and grass growth significantly below expected levels. As a result, supply volumes, milk constituents and farm costs were adversely affected.
“While dairy markets continue to be relatively weak, Glanbia is very conscious of the challenges currently faced by our suppliers and we will continue to do as much as possible to support them,” he said.
It comes as Lakeland Dairies cut its March milk price by 2.5c/L, but announced that it will "balance a reduction in the March milk price with a payment to support milk producers during the current very poor milk production conditions caused by bad weather and the fodder crisis".
Ahead of announcing the March milk price, Lakeland Dairies Chief Executive Michael Hanley said the basket is returning far less than 30c/L.
“That is with butter prices not far off €5,000/t but the skim market is 5-6c/L under intervention price which is very concerning,” he said.
“The overhang in the market place is a major negative shadow.”
Since late 2017, global market conditions have become very difficult with a significant drop in the returns available across various product categories and most notably skim milk powders.
Taking all of the various factors into account, Lakeland Dairies has reduced is base milk price by 2.5c/L for March but has offset this reduction through the payment of 2.5c/L support for all March supplies.
It says that this maintains the effective milk price payout for March at 34.56c/L including VAT and lactose bonus.
The co-operative announecd that it is also continuing to provide fodder at cost to milk producers along with ongoing nutritional advice and assistance in this difficult period.