Kerry Creameries Limited has said it will pay an additional payment on milk solids supplied under contract in 2025.

The payment of 0.5c/L will include VAT and will be paid at average Kerry milk solids.

The additional payment will not be made on milk supplied under forward price schemes.

According to Kerry Creameries, the total payment to be made is €6.2 million.

A statement from the dairy business said: "Kerry Creameries Limited, following consultation with the board of Kerry Co-Operative Creameries Limited, will pay an additional 0.5c/L...on all milk solids supplied under the Milk Supply Contract in 2025, excluding milk solids supplied under forward price schemes.

"The total additional payments to milk suppliers amounts to €6.2 million," the statement added.

Milk price

The most recent Kerry Dairy Ireland milk price, issued for February milk supplies, stood at 37.5c/L, including VAT.

This price included a base-price top-up of 3c/L, VAT inclusive; and quality and sustainability bonuses.

That milk price was unchanged from January.

Based on Kerry Dairy Ireland’s average milk solids for February, the processor said the milk price return inclusive of VAT, quality and sustainability bonuses was 43.3c/L.

In a statement, a spokesperson for Kerry Dairy Ireland said at the time of the milk price announcement: "Commodity prices have strengthened in recent weeks despite continued growth in global milk production".

"The ongoing conflict in the Middle East presents a potential headwind, with the prospect of reduced purchasing activity from the region," they added.

Kerry Dairy Ireland contracts

Also last month, Kerry Dairy Ireland suppliers called for new milk supply contracts to be issued to them.

Some suppliers have expressed concern that they have not yet received their new contracts.

In 2021, suppliers learned that their milk supply contracts will terminate on April 30, 2026.

KDI has said last month that "it is anticipated new milk supply contracts will be issued to milk suppliers in early April".