Kerry Group has today (Monday, April 17) become the latest processor to confirm the price it will pay farmers for milk supplied in March.

Kerry will pay suppliers a base milk price of 40c/L, including VAT, for milk at 3.3% protein and 3.6% butterfat.

This marks a drop of 4c/L by the processor from the base price of 44c/L for February supplies. It follows falls of 6c/L in the base price for both December and January.

In a statement, the processor also confirmed that it will pay an additional 2c/L including VAT at 3.3% protein and 3.6% butterfat on January, February and March volumes as part of its contractual commitment.

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The base price for March converts to 43.88c/L on the standard European constituents of 3.4% protein and 4.2% butterfat.

Based on Kerry’s average milk solids for February, the milk price return inclusive of VAT and bonuses is 43.66 c/L.

“Dairy markets are currently experiencing a significant downturn which is manifested in sluggish demand for dairy commodities.

“As a result, commodity prices have experienced a significant decline, reaching levels that cannot sustain current milk prices.

“Furthermore, the elevated costs of both farm and factory operations are exacerbating the challenging outlook for profitability among all stakeholders in the dairy industry,” the statement read.

March milk price

On Friday (April 17), Lakeland Dairies became the first processor to announce a milk price for March.

The Lakeland board decided to reduce the cooperative’s milk price for March, as global dairy market conditions continue to worsen.

In the Republic of Ireland, Lakeland Dairies has reduced milk price by 4c/L to 42.85c/L inclusive of VAT at 3.6% fat and 3.3% protein.

The March price includes an Input Support Payment of 1.5c/L, inclusive of VAT, for all suppliers.

In Northern Ireland, Lakeland Dairies has reduced the milk price by 3.5p/L to 35p/L. The March price includes a supplementary Input Support Payment of 1.5p/L.

The processor said that volatile economic conditions, diminished consumer confidence and reductions in demand from dairy buyers are yielding consistently lower market returns.

Global dairy supplies continue to run ahead of these reduced demand levels, Lakeland added.

This has necessitated an ongoing correction in milk prices pending any return to more balanced supply and demand conditions, the co-op said.