Kerry Dairy Ireland has today (Tuesday, June 17) confirmed that its milk price for May supplies is 50.03c/L including VAT, quality and sustainability bonuses.

At EU standard constituents of 3.4% protein and 4.2% butterfat the milk price is 54.66c/L (including VAT).

Based on Kerry Dairy Ireland’s average milk solids for May, the milk price return inclusive of VAT, quality and sustainability bonuses is 52.75c/L.

In April, the price paid by Kerry Dairy Ireland for milk supplies stood at 50.43c/L including VAT and quality and sustainability bonuses.

In a statement, Kerry Dairy Ireland said that "on the supply side, global milk production has grown this year and is expected to maintain a similar trajectory in the months ahead".

"Strong demand has supported relative market stability; however, rising commodity prices are beginning to filter through to retail, which may result in increased pressure on consumer demand," the processor added.

Earlier today, the Dairygold board confirmed a cut to its May quoted milk price of 1c/L to 49c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality payments, and VAT.

Dairygold said that the May milk price equates to an average May farmgate milk price of 53.4c/L, based on the average May milk solids achieved by Dairygold milk suppliers.

This is a reduction of 1.2c/L on the average monthly price of 54.6c/L for April.

Last week, the board of Lakeland Dairies announced that it had decided to pay 49.25c/L for milk in the Republic of Ireland at the standard constituents.

In Northern Ireland, 40.3p/L will be paid on standard constituents.

On both sides of the border, an unconditional bonus of 5c/L or 5p/L will be paid on all supplied litres, while both prices also include the usual Sustainability Incentive Payment.