Kerry Dairy Ireland has today (Friday, March 14) confirmed the price it will pay suppliers for milk delivered in February.

The processor said that the milk price for February milk supplies is 52.47c/L, including VAT.

Kerry Dairy Ireland noted that this is inclusive of a base-price top-up of 1c/L, including VAT, quality and sustainability bonuses.

The milk price for supplies made during the month of January stood at 53.5c/L, including VAT.

At EU standard constituents of 3.4% protein and 4.2% butterfat, the processor said that the February milk price is 57.31c/L, including VAT.

Based on Kerry Dairy Ireland’s average milk solids for February, the milk price return inclusive of VAT, quality and sustainability bonuses is 60c/L.

In a statement, Kerry Dairy Ireland said: "Despite geopolitical uncertainties, demand for butter and cheese remains strong, while demand for powders is weaker.

"Although the European milk production season began slowly, it is expected to gain momentum in the short term which could exert some downward pressure on prices."

Earlier this week, Lakeland Dairies announced that it was reducing its base milk price for milk supplied in February, while providing a calving bonus of 2c/L for Republic of Ireland suppliers.

The board of the processor has agreed on a base price of 48.75c/L based on constituents of 3.6% butterfat and 3.3% protein.

This price is inclusive of the 0.5c/L Sustainability Incentive Payment. This price is down by 1c/L from the price offered for January milk.

The processor added that all suppliers will “automatically” receive a 2c/L early calving bonus. Meanwhile, qualifying farmers will also receive a 5c/L out-of-season payment.

In Northern Ireland, Lakeland confirmed a base price of 39.8p/L will be paid for milk supplied in February which is inclusive of the 0.5p/l Sustainability Incentive Payment.

This base price has also been reduced by 1p/L from last month. The 3p/L out-of-season payment will be made on top of the base price.