Kinisla has confirmed its milk price for May supplies.

Kinisla, the dairy processor previously known as Kerry Dairy Ireland, said it will increase the milk price to pay 38c/L (VAT inclusive) including quality and sustainability bonuses.

At EU standard constituents of 3.4% protein and 4.2% butterfat, this equates to 41.63c/L (VAT inclusive).

Based on Kinisla’s average milk solids for May, the milk price return inclusive of VAT, quality and sustainability bonuses is 40.93c/L.

Kinisla said that global milk production "continues to increase at significant levels, and as markets assess the outlook for demand, prices are stabilising and beginning to ease slightly".

Milk price

Lakeland Dairies was the first processor to announce the price it would pay to farmer suppliers for May milk.

Lakeland said the board had agreed to increase the price for milk by 0.5c/L for May.

A base price of 37.5c/L at constituents of 3.6% butterfat and 3.3% protein will be paid for May milk in the Republic of Ireland.

This is inclusive of the 0.5c/l Sustainability Incentive Payment, Lakeland said.

In Northern Ireland, a base price of 30.1p/L will be paid for milk supplied in May which is also inclusive of the Sustainability Incentive Payment.

This is an increase of 0.5p/L.

Milk supply

Lakeland said that while milk pricing is increasing, it is "more a function of support rather than market conditions".

"Milk supply remains strong and continues to influence the market, while demand has weakened since last month," it said.

"Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions."