Kerry Dairy Ireland has today (Monday, November 17) confirmed its milk price for supplies delivered during October.

The dairy processor has confirmed that it will pay milk suppliers 41c/L, including VAT, quality and sustainability bonuses.

This marks a reduction of over 3c/L when compared to the September price of 44.53c/L including VAT, which was down from 47.53c/L in August.

At EU standard constituents, of 3.4% protein and 4.20% butterfat, the October milk price is 44.84c/L, VAT inclusive.

Kerry Dairy Ireland

Based on Kerry Dairy Ireland’s average milk solids for October, the milk price return inclusive of VAT, quality and sustainability bonuses is 52.67c/L.

In a statement, Kerry Dairy Ireland said: "Market sentiment remains subdued as global milk production continues to outpace demand.

"It has been some time since the growth in supply has so clearly exceeded the growth in consumption."

Last week, Pat Murphy, the chief executive of Kerry Dairy Ireland, warned that the next 12 months will be "very challenging" for dairy farmers.

Murphy told the Listowel Food Fair Frank Hayes Memorial Farming Seminar last night (Monday, November 11) about the current difficulties facing global dairy markets, including the high volumes of milk being produced.

Milk price

Today's announcement follows a decision by Lakeland Dairies to cut its milk price by 4c/L compared to September.

The board said it has agreed a price of 40.25c/L at 3.6% butterfat and 3.3% protein to be paid for October milk in the Republic of Ireland, which is inclusive of the 0.5c/L sustainability incentive payment.

In Northern Ireland, a price of 32.3p/L will be paid for milk supplied in October which is also inclusive of the sustainability incentive payment.

This is a reduction of 3.5p/L on the price paid in September.