The company said this Monday that it was increasing its base price by 1.5c/l. This brings its July milk price to 32.7c/l excluding VAT at 3.6% fat and 3.3% protein.

Meanwhile, Carbery has increased its milk price by 1c/l. It is now up to the four west Cork co-ops to decide whether to implement the increase for their members.

Last week, Glanbia Ireland and Lakeland Dairies both increased their milk price by 1c/l to 32.2c/l.

IFA dairy Chairman Sean O’Leary this Monday called on co-ops to follow their lead and increase their July milk price by at least 1c/l in the wake of recent positive or stable market signals. He argued that this is needed to catch up with debt commitments on farms and "will also be due recognition for the commitment made by farmers to SDAS, which co-ops owe them to leverage into better markets and prices".

Kerry Group has posted strong revenues and profits for the first half of the year, but cut its growth forecast for the second half because of the deteriorating exchange rates for exports outside the euro area.

In his last major interview before he retires next month, Kerry Group chief executive Stan McCarthy will share his medium-term outlook for dairy markets in the agribusiness pages of this week's Irish Farmers Journal.

Additional reporting by Tommy Moyles.

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Full coverage: Kerry Group