Kerry Group has today (Thursday, June 15) become the latest processor to confirm the price it will pay farmers for milk supplied in May.
Kerry will pay suppliers a base milk price of 37c/L, including VAT, for milk at 3.3% protein and 3.6% butterfat.
This marks a drop of 1c/L by the processor from the base price of 38c/L for April supplies.
This latest price equates to 40.61c/L including VAT at EU standard constituents 3.4% protein and 4.2% butterfat.
The processor said that, based on Kerry’s average milk solids for April, the expected average milk price return inclusive of VAT and bonuses is 39.09c/L.
In a statement, Kerry Group said that “global dairy markets continue to struggle with significant demand uncertainty”.
“This uncertainty is largely attributed to a misalignment of income with inflated prices and rising interest rates, resulting in weakened purchasing power.
“The structural transformation of the dairy industry in China is compounding inflationary-based demand uncertainty.
“The emphasis on domestic milk production and resulting output growth has reduced China’s reliance on global suppliers.
“Global milk production is still positive but is currently experiencing a noticeable deceleration,” the processor said.
On Tuesday (June 13), Lakeland Dairies was the first processor to announce a milk price for May.
In the Republic of Ireland (ROI) the processor has held the base price of milk for May at 37.35c/L including VAT, for milk at 3.6% fat and 3.3% protein.
The board has discontinued the monthly Input Support Payment (previously 1.5c/L in ROI and 1.5p/L in Northern Ireland), which was first established in August 2022 onwards.
In Northern Ireland, Lakeland Dairies has held the base price of milk for May at 30p/L.