Kerry Dairy Ireland has confirmed the milk price it will pay to its suppliers for July, deciding to reduce its price.

The Kerry Dairy Ireland milk price for July milk supplies is 49.03c/L, including VAT, quality and sustainability bonuses.

This is down from the is 50.03c/L offered last month for milk supplies in June.

The processor said that, based on Kerry Dairy Ireland’s average milk solids for July, the milk price return inclusive of VAT, quality and sustainability bonuses is 53.32c/L.

At EU standard constituents of 3.40% protein and 4.20% butterfat, the milk price is 53.57c/L, including VAT.

In a statement today (Thursday, August 14), Kerry Dairy Ireland said:

"Global dairy markets are shifting toward a supply-heavy position, with relatively strong milk output across key production regions outpacing demand growth.

"This imbalance is putting some downward pressure on commodity prices."

Yesterday, Lakeland Dairies board confirmed that it would pay a price of 48.25c/L (3.6% butterfat and 3.3% protein) for July milk in the Republic of Ireland (ROI) which is inclusive of the 0.5c/L Sustainability Incentive Payment.

This is a reduction of 1c/L on the price paid in June.

In Northern Ireland (NI), a price of 39.3p/L will be paid for milk supplied in July which is also inclusive of the Sustainability Incentive Payment. This is a reduction of 1p/L on the price paid in June.

The processor has stated that market prices have declined over the last three to four weeks, driven by a steady increase in global milk supplies and softening demand amid ongoing trade and geopolitical tensions.

"Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions," the company said.