Carbery Group has today (Tuesday, October 18) confirmed that it is to maintain the price paid to farmers for milk supplied during September at the same level as August.

If this decision is replicated across the four west Cork co-ops (Bandon, Barryroe, Drinagh and Lisavaird), this will result in an average price for September of 57.2c/L, inclusive of VAT and 0.5c/L somatic cell count (SCC) bonus.

A spokesperson for Carbery stated that whilst dairy markets are expected to remain stable in the near term, “the business continues to monitor the impact that the current global economic challenges are having on demand for dairy produce”.

Carbery dairy
Carbery plant in Ballineen, West Cork

The news from Carbery to hold its base price for September milk supplies is in line with previous announcements from other processors in recent days.

Lakeland Dairies was the first processor to confirm that it would maintain its milk price for September at the same level as August.

The base price for the Republic of Ireland will remain at 57.35c/L including VAT, for milk at 3.6% fat and 3.3% protein.

A supplementary input support payment of 1.5c/L, inclusive of VAT, to all suppliers including fixed milk-price contracts, which was introduced in August, remains in place.

The brings the minimum price for each supplier to 58.85c/L.

On Monday, there was a similar announcement from Kerry Group. The processor will pay a base price of 56c/L at 3.3% protein and 3.6% butterfat for September supplies, inclusive of VAT.

Based on Kerry Group’s average milk solids for September supplies, the milk price return inclusive of VAT and bonuses is 66.19c/L, according to the processor.

Kerry Group will also pay an additional 2c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat on September volumes as part of “contractual commitment”. This is an increase of 0.5c/L compared to last month.