Kinisla has announced its milk price for supplies in August, opting to increase its price by 0.5c/L.

The Kinisla milk price for August milk supplies has been set at 39.6c/L, including VAT, and quality and sustainability bonuses.

Based on Kinisla’s average milk solids for August, the milk price return, inclusive of VAT, quality and sustainability bonuses, is 45.21c/L, the processor said.

According to Kinisla, demand for dairy products is good, while milk production growth is starting to slow slightly.

This tightening of the supply-demand balance is providing continued support to commodity markets.

Milk prices

Meanwhile, the Lakeland Dairies board has confirmed its August milk price.

Lakeland will pay a base milk price of 39.1c/L (based on standard constituents of 3.6% butterfat and 3.3% protein), including VAT, for August milk in the Republic of Ireland.

Lakeland said this is inclusive of the 0.5c/L Sustainability Incentive Payment.

The Lakeland milk price for August marks an increase of 0.6c/L on July.

The average payout will be 44.7c/L, Lakeland said.

In Northern Ireland, a base price of 31.4p/L will be paid for milk supplied in August, which is also inclusive of the Sustainability Incentive Payment.

This is an increase of 0.5p/L.

A Lakeland spokesperson said the market continued to improve throughout the month of August.

"Global milk production remains high but the rate of growth is slowing," Lakeland said.

"This will help to bring a better balance between supply and demand in the months ahead," the processor said.

Ornua PPI

In other dairy news, the Ornua Purchase Price Index (PPI) has increased for the month of August, while the resulting indicative milk price return has remained unchanged.

The Ornua Monthly Purchase Price Index (PPI) for August is 130.4, up from the previous month at 130.2.

After deducting estimated processing costs, Ornua's PPI implies an indicative return of 36.2c/L, inclusive of 4.5% VAT, for milk at 3.6% fat and 3.3% protein.

This price is unchanged from the indicative return for July.