Kerry Dairy Ireland, a division of Kerry Group, has confirmed the milk price it will pay to farmers for supplies in July.
The milk price for July is 44c/L, including VAT, at constituents of 3.3% protein and 3.6% butterfat.
This is an increase on the price for June milk, which was 42.5c/L.
At EU standard constituents of 3.4% protein and 4.2% butterfat, the price translates to 48.23c/L.
Kerry Dairy said that, based on the average milk solids supplied for July, the average price return, inclusive of VAT and bonuses, is 48.32c/L.
Kerry Dairy said that butter prices continue to bolster dairy market returns.
“The demand landscape remains largely stable, with robust demand outside of China, while demand from China continues to be weak,” Kerry Dairy said.
The announcement from Kerry Dairy follows on from the announcement of Lakeland Dairies’ milk price for July, which was announced yesterday (Wednesday, August 13).
The board of Lakeland has confirmed that the price for milk supplied in July will see an increase in the base price from last month.
A base price of 45.25c/L – based on 3.6% butterfat and 3.3% protein – will be paid for July milk by Lakeland in the Republic of Ireland. This is inclusive of the 0.5c/L Sustainability Incentive Payment.
The base price has increased by 1.75c/L for milk supplied from last month.
In Northern Ireland, a base price of 37.3p/L will be paid for milk supplied in July, which is inclusive of the 0.5c/L Sustainability Incentive Payment.
The base price has increased by 1.5p/L from last month.
Lakeland stated that the global dairy market returns have “improved” month-on-month with butter markets in particular showing increased returns from last month.
“Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers as best we can,” the co-op stated.
Lakeland also encouraged farmers to carry out of fodder survey to get an accurate picture of feed stocks on their farm.
“If deficits have been identified, we are strongly advising farmers to take action,” the processor said.