A 5.1% drop in dairy market returns between November and December has seen the Irish Dairy Board’s Purchase Price Index (PPI) slump to 94.4 for December.

The index, which tracks the price received for products sold by the IDB, has fallen by 29% from its peak in January. A base of 100 equates to the average price received in 2010.

Meanwhile, Kerry has cut its December price by one cent per litre to a vat-inclusive 30 cent. IFA’s dairy chairman Sean O’Leary welcomed the fact that Lakeland and Glanbia have held their price. Dairygold is also expected to remain unchanged.

Separately, Glanbia co-op has agreed to add €3m to its previously announced €20m price support fund.

The details will be decided by the board once approval is secured at an SGM. The €3m loyalty bonus will be paid out to members on the basis of €5/t on 2014 feed and fertilizer purchases and €5/t for 2015 grain intake.

The timing and conditions of payment will be decided by the co-op board, but it will equate to approximately 1.5c/litre for 2015 milk.

Glanbia also confirmed that no superlevy deductions would be made to over quota suppliers until May. Any applicable fines will be deducted from May to September.

Only farmers that have signed a milk supply agreement will qualify for the superlevy and co-op price support measure.