Kerry Dairy Ireland has today (Tuesday, December 16) confirmed its milk price for supplies delivered during November.

The dairy processor has confirmed that it will pay milk suppliers 37.5c/L, including VAT, quality and sustainability bonuses.

This is a further cut to its milk price. Last month, the processor paid suppliers 41c/L.

At EU standard constituents of 3.4% protein and 4.2% butterfat, the milk price for November supplies is 41.03c/L, VAT inclusive.

Based on Kerry Dairy Ireland’s average milk solids for November, the milk price return inclusive of VAT, quality and sustainability bonuses is 49.19c/L.

Outlook remains 'weak'

In a statement, Kerry Dairy Ireland said: "Global milk production continues to grow at an unprecedented pace.

"Although lower prices are supporting some improvement in demand, markets remain oversupplied, with inventory levels particularly high in Europe.

"The outlook remains weak until production growth slows, and market balance improves."

Other processors have also confirmed milk price cuts in recent days.

The Dairygold board has reduced the November milk price by 2c/L to 36c/L.

According to Dairygold, the November milk price equates to an average farm gate milk price of 49.1c/L.

Meanwhile, the Lakeland Dairies board has confirmed that a price of 36.25c/L at 3.6% butterfat and 3.3% protein, will be paid for November milk in the Republic of Ireland (ROI) which is inclusive of the 0.5c/L Sustainability Incentive Payment.

This is a reduction of 4c/L on the price paid in October.