Kerry Group has today (Thursday, March 14) confirmed an increase in its milk price for February to 40c/L, up from 39.5c/L.
This is including VAT for milk supplied last month at 3.3% protein and 3.6% butterfat, consisting of a base price of 38c/L and a milk contract payment of 2c/L on all qualifying milk volumes.
The February milk price at EU standard constituents (3.4% protein and 4.2% butterfat) is 43.88c/L.
Based on Kerry’s average milk solids for February, the price return inclusive of VAT and bonuses is 45.35c/L.
A spokesperson for Kerry Group said: “Dairy buyers remain cautious but global consumer demand is improving which should lead to improved dairy demand.”
“Milk production growth is sluggish leading to optimism around dairy prices in the medium term,” the spokesperson added.
Milk price
The Lakeland Dairies Board has also announced its milk price for February.
A base price of 41.4c/L (3.6% butterfat and 3.3% protein) will be paid for February milk in the Republic of Ireland.
The base price has increased by 1.5c/L including the new 0.5c/L Sustainability Incentive Payment.
The 1c/L Input Support Payment paid on all January milk now forms part of the base price for February milk according to the processor.
All suppliers will automatically receive a 2c/L early calving bonus meaning the price all suppliers receive for February milk is 43.40c/L.
Meanwhile, qualifying farmers will also receive a 5c/L out-of-season payment.
In Northern Ireland, a base price of 34p/L will be paid for milk supplied in February. The base price has increased by 1.25p/L including the new 0.5p/L Sustainability Incentive Payment.