The price being paid out is 35c per litre, at 3.3% protein and 3.6% butterfat consisting of a base price of 32c per litre and a milk contract payment of 3c per litre on all qualifying milk volumes.
The September milk price at EU standard constituents (3.4% protein and 4.2% butterfat) is 38.44c per litre.
Based on Kerry’s average milk solids for September, the milk price return inclusive of Vat and bonuses is 41.91c per litre.
A Kerry spokesperson said that “while increasing butter and skim futures seem to be reflecting some concern around dairy commodity supply for next year, demand continues to underwhelm in the short-term”.
“The supply side in terms of milk volume has softened across the major exporters but an increase in milk solids is also dampening some of the anticipated market effect,” the spokesperson added.
Lakeland Dairies has also confirmed its price for September milk, which also remains unchanged from August, at 34c per litre.
In Northern Ireland, a base price of 27.25p per litre will be paid for milk supplied in September. Again, the base price has been held for September supplies.
A Lakeland spokesperson said that “while sentiment in the global dairy market has shown some tentative signs of improvement in recent weeks, there has been little in the way of increased activity with buyers continuing to take a reserved position”.
“We are entering a crucial demand period for dairy, against a backdrop of New Zealand approaching its peak milk supply months. Lakeland Dairies will continue to monitor the markets closely in the time ahead,” the spokesperson said.
As the majority of board meetings take place this week to finalise the milk price for September, Irish Farmers’ Association national dairy committee chairman Stephen Arthur has reemphasised the need for processors to hold milk price.
“Lakeland Dairies held milk price last week and it is imperative that every other milk processor does the same thing this week,” Mr Arthur said.
“This is against a backdrop of early, but promising signals in the marketplace of a rebound in commodity prices.
“Farmers need every cent they get this backend given the difficult weather conditions we have had and the stubbornly high input prices we have to pay.”
