Kerry Group has today (Thursday, June 15) become the latest processor to confirm the price it will pay farmers for milk supplied in May.

Kerry will pay suppliers a base milk price of 37c/L, including VAT, for milk at 3.3% protein and 3.6% butterfat.

This marks a drop of 1c/L by the processor from the base price of 38c/L for April supplies.

This latest price equates to 40.61c/L including VAT at EU standard constituents 3.4% protein and 4.2% butterfat.

The processor said that, based on Kerry’s average milk solids for April, the expected average milk price return inclusive of VAT and bonuses is 39.09c/L.

In a statement, Kerry Group said that "global dairy markets continue to struggle with significant demand uncertainty".

"This uncertainty is largely attributed to a misalignment of income with inflated prices and rising interest rates, resulting in weakened purchasing power.

"The emphasis on domestic milk production and resulting output growth has reduced China’s reliance on global suppliers.

"Global milk production is still positive but is currently experiencing a noticeable deceleration," the processor said.

On Tuesday (June 13), Lakeland Dairies was the first processor to announce a milk price for May.

In the Republic of Ireland (ROI) the processor has held the base price of milk for May at 37.35c/L including VAT, for milk at 3.6% fat and 3.3% protein.

The board has discontinued the monthly Input Support Payment (previously 1.5c/L in ROI and 1.5p/L in Northern Ireland), which was first established in August 2022 onwards.

In Northern Ireland, Lakeland Dairies has held the base price of milk for May at 30p/L.