Kerry Dairy Ireland has today (Tuesday, January 13) confirmed its milk price for supplies delivered during December.

The dairy processor has confirmed that it will pay milk suppliers 34.5c/L, including VAT, quality and sustainability bonuses.

This marks a 3c/L cut to its milk price when compared with November. Last month, the processor paid suppliers 37.5c/L.

At EU standard constituents of 3.4% protein and 4.2% butterfat, the milk price for December supplies is 37.77c/L, including VAT.

Kerry Dairy Ireland

Based on Kerry Dairy Ireland’s average milk solids for December, the milk price return inclusive of VAT, quality and sustainability bonuses is 44.35c/L.

In a statement, Kerry Dairy Ireland said: "Global milk production remains strong, particularly across Europe.

"Continued growth in output, coupled with high inventory levels and muted demand from the foodservice sector, continues to exert downward pressure on the dairy market."

Milk price

Yesterday, Lakeland Dairies also confirmed a reduction in the price it will pay its farmers for milk supplied in December.

The processor has agreed a price of 33.25c/L - based on 3.6% butterfat and 3.3% protein - for December milk in the Republic of Ireland, which is inclusive of the 0.5c/L Sustainability Incentive Payment.

This represents a reduction of 3c/L on the price paid in November, which was 36.25c/L.

Lakeland Dairies said that qualifying farmers will also receive an out-of-season payment on top of the base price.

In Northern Ireland, Lakeland Dairies will pay a price of 26.3p/L for milk supplied in December which is also inclusive of the Sustainability Incentive Payment.

This is a reduction of 2.5p/L on the price paid in November which was 28.8p/L.