Kerry Group has confirmed today (Friday, September 15) that it will pay suppliers a base price of 32c/L, including VAT, for milk supplied during the month of August.
The processor also announced that there will be a further milk contract payment of 3c/L, including VAT, on all qualifying milk volumes.
Suppliers who receive the additional payment will see a price offering of 35c/L, including VAT, at 3.3% protein and 3.6% butterfat.
Kerry said that based on average milk solids for August, the milk price return inclusive of VAT and bonuses is 39.80c/L.
At EU standard constituents of 3.4% protein and 4.2% butterfat, the processor’s August milk price is 38.44c/L.
Kerry Group
In a statement, Kerry Group said: “The short- to medium-term outlook on commodity dairy continues bearish with little sign of any demand side correction in the offing.
“The supply side across the major exporting regions has been more robust than anticipated year-to-date with signs of more significant softening just becoming apparent.”
The base price for August milk of 32c/L reflects a 2c/L reduction on the base price paid by Kerry Group for supplies in July.
On Tuesday (September 12), Lakeland Dairies announced its price for milk supplied in August, which the processor said “represents market conditions”.
The board decided to cut its price in the Republic of Ireland by 1.5c/L on last month’s offering.
This gives a price of 34c/L based on standard constituents of 3.6% butterfat and 3.3% protein for milk supplies south of the border.
Lakeland said that the expected average payment for Republic of Ireland suppliers for August, based on this latest price, will be 38c/L.
The base price offering for suppliers in Northern Ireland, meanwhile, has been reduced by 1.25p/L, to give a price of 27.25p/L, down from 28.5p/L for last month.
For Northern Irish suppliers, the expected average payment will be 29.5p/L, Lakeland said.