Kerry Dairy Ireland, the dairy division of Kerry Group, has today (Wednesday, October 16) confirmed the milk price it will pay to farmers for supplies made in September.

The processor said that the milk price for September is 47.75c/L, including VAT, at constituents of 3.3% protein and 3.6% butterfat.

This marks another increase in milk price for Kerry suppliers; up from 45.25c/L in August, 44c/L in July and 42.5c/L in June.

At EU standard constituents of 3.4% protein and 4.2% butterfat, the August price translates to 52.31c/L.

Based on Kerry’s average milk solids for August, the milk price return inclusive of VAT and bonuses is 58.37c/L.

"Cheese prices are providing additional support to dairy markets at present as butter prices have softened marginally from historic highs in recent weeks, " Kerry Dairy Ireland said in a statement issued today.

Last week, Lakeland Dairies announced that it would increase its milk price for September, as well as offer a €30/t feed rebate to its suppliers.

A base price of 49c/L at constituents of 3.6% butterfat and 3.3% protein will be paid for September milk in the Republic of Ireland, which is inclusive of the 0.5c/l Sustainability Incentive Payment.

The base price has increased by 2.5c/L from last month.

In Northern Ireland, a base price of 40.3p/L will be paid for milk supplied in September which is inclusive of the 0.5p/l Sustainability Incentive Payment. The base price has increased by 2p/L from last month.

Lakeland said that global dairy markets remain largely positive at present, having strengthened throughout quarter three.

The processor said it will continue to monitor the markets and will “endeavour to support our farmers as best we can”.