Kerry Dairy Ireland has said that it will pay a 'base price top up' as part of its milk price for January.

The processor said that its milk price for January supplies will be 37.5c/L, including VAT, the base price top up, and quality and sustainability bonuses.

This compares to a milk price of 34.5c/L that was announced last month for December supplies.

The 3c/L top up will bring the January milk price back to the same level as the milk price for November supplies, before it was cut by 3c/L for December milk.

Kerry Dairy Ireland said that, based on its suppliers' average milk solids for January, the average milk price return will be 45.28c/L.

The processor said that dairy commodity markets have stabilised in recent weeks, finding a floor "despite continued strong milk supply, with volumes across major exporting regions still exceeding earlier projections".

Milk price

Last week, the Lakeland Dairies board confirmed it will hold its price for milk for January.

The board agreed to hold the base price of 33.25c/L - based on 3.6% butterfat and 3.3% protein - for January milk in the Republic of Ireland, which is inclusive of the 0.5c/L Sustainability Incentive Payment.

This is the same as the price paid for December milk.

However, the co-op also said that "to help and support farmers through the current market challenges, the co-operative will pay a 2c/L input support".

It added that Republic of Ireland farmers will receive the normal 1c/L early calving bonus.

"This will bring the minimum base price for milk to 36.25c/L," Lakeland Dairies stated.

The co-operative will also pay 5c/L on all qualifying litres for the out of season bonus.

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

This is the same as the price paid in December.

The co-op added that an input support of 1.75p/L will also be paid.

"All farmers will also receive an out-of-season payment of 3p/L. This will bring the minimum base price for milk in NI to 31.05p/L," Lakeland Dairies added.