Kerry Dairy Ireland has revealed its milk price for supplies in September, opting to reduce its offering by 3c/L.

The processor said its milk price for September is 44.53c/L including VAT, back from 47.53c/L for August milk.

The price is inclusive of quality and sustainability bonuses, Kerry Dairy Ireland said.

Based on the processor's average milk solids for September, the milk price return inclusive of VAT and bonuses will be 54.63c/L, a statement from the business said.

The statement said that dairy markets "remain oversupplied", and sentiment in markets is "very weak".

"Continued strong milk supplies across key producers are exerting downward pressure on commodity prices," the statement added.

"Market stabilisation and recovery will be dependent on demand picking up at lower prices to absorb surplus supply," Kerry Dairy Ireland said.

Milk prices

The latest milk price for Kerry Dairy Ireland is part of a wider trend in the last two months of milk prices moving downward.

Last Friday (October 10), Lakeland Dairies confirmed the price for milk for September.

The board of Lakeland agreed a price of 44.25c/L at 3.6% butterfat and 3.3% protein for September milk in the Republic of Ireland, which is inclusive of a 0.5c/L Sustainability Incentive Payment.

This is a reduction of 3c/L on the price paid in August.

In Northern Ireland, Lakeland Dairies announced a price of 35.8p/L for milk supplied in September, which is also inclusive of the Sustainability Incentive Payment.

This is a reduction of 2.5p/L on the price paid in August.

In a statement, Lakeland warned that the market continues to experience pressure "due to sustained strong global supply, particularly from major dairy-exporting regions".

Lakeland Dairies added: "This is driving a decline in commodity prices for butter and all milk products and is contributing to a significant downward momentum on farmgate price."