Kerry Group has cut its base milk price by a further 6c/l for February supplies, to 44c/L (VAT included) at 3.30pc protein and 3.60pc fat.

At EU standard constituents the price is 48.23c/L (VAT included) at 3.40pc protein and 4.20pc fat.

Based on Kerry’s average milk solids for February, the milk price return inclusive of VAT and bonuses is 50.66c/L.

On Monday, Lakeland Dairies also cut its milk price for February milk by 6c/L citing that "weaker dairy market conditions” are continuing to have a serious effect on market returns.

This is the second 6c/L cut Lakeland Dairies has announced this year and in a statement it said that “overall outcomes remain unpredictable and there is continuing variability which will remain a feature of global markets for the immediate period ahead”.

In the Republic of Ireland, Lakeland Dairies has reduced the milk price by 6c/L to 46.85c/L inclusive of VAT, for milk at 3.6pc fat and 3.3pc protein. This price includes an Input Support Payment of 1.5c/L inclusive of VAT.

In Northern Ireland, Lakeland Dairies has reduced the milk price by 4p/L to 38.5p/L, this price includes a supplementary Input Support Payment of 1.5 p/L.

While markets firmed somewhat over the past month, it's said that the latest price cut "has come from a low-level base of current prices."

"Generally weaker conditions have continued due to higher global milk supplies and fluctuating demand from dairy buyers.

"This is against a backdrop of economic uncertainty with ongoing inflationary pressures impacting consumer, trade and manufacturing requirements for dairy products and ingredients."

Last week, dairy prices disappointed at a Global Dairy Trade (GDT) auction, with returns down just under 1pc, while Ornua has indicated its February returns imply an indicative return of 45.0c/L, VAT inclusive (down from 49.1c/L in January).

Ornua said the decrease is due to continued weaker returns across the product mix.

At the GDT auction, whole milk powder prices were largely flat and described as ‘wrong footing’ futures market expectations of a circa 2pc lift.

Prices for most other products eased (including a 10pc dip in cheese prices), taking the overall GDT index circa 0.7pc lower.

According to Nat Keall, Economist with New Zealand bank ASB, in Europe milk production continues its tentative improvements, albeit off a low base.

"Supply isn't surging but looks set to outpace demand for a while yet," he said.