"Our October milk cheques were based on a farmgate price of 34 pence per litre," confirmed United Irish Organics' managing director Rex Humphrey.
"Prices might drop by two pence next month with the effects of the fall-off in consumer spending. But I am hopeful that the market will rally again in the run-up to Christmas.
"Half of our milk goes to the liquid market with the rest used to produce organic milk powders and butter. And yes demand for food ingredients from the organic dairy sector has fallen considerably over recent weeks. However, demand may well pick up again in thre not too distant future as the market settles down at a more realistic level."
He added: "The media is totally focussed on the so called 'credit crunch' at the present time, so much so that they are danger of making it a self fulfilling prophecy."
With regard to the crash in prices recorded at United Dairy Farmers' latest auction Rex Humphrey pointed out that the organic and traditional milk sectors are operating in two entirely different markets.
"We are an example of what can be achieved by adding value to milk," he explained.
"There has been considerable growth achieved within the organic sector since our inception almost 10 years ago.
"Back in 1999 total sales of organic milk
in Northern Ireland amounted to 19,000 litres/month, all of which was imported from Great Britain.
"This year we, and our partners, will process approximately 7 million litres of organic milk for both local consumption and export. All of the milk is produced by the cows on our own farm and those of our additional farmer suppliers.
"Our business plan is a simple one: to produce organic milk as efficiently as possible and work with the professionals, who market it, again in the most efficient way possible."
Rex Humphrey concluded: "Yes these are challenging times for the commodity-based milk sector. But panicking is not the answer. It's time for everyone to hold their nerve."