Kerry Group has increased its base price by 1c/l, excluding VAT, for January milk supplies.

The processor has set its base price at 35.2c/l, excluding VAT, for supplies at 3.3% protein and 3.6% fat.

A milk contract payment of 2.4c/l will be paid on all qualifying milk volumes, excluding VAT.

Based on average milk solids for January, and including bonuses, Kerry’s milk price is 44.5c/l, excluding VAT.

This is the second consecutive month Kerry has moved to increase its milk price, prior to this price had remained at the same level since August.

The processor outlined a number of factors impacting milk price at present.

“Dairy markets remain volatile and without definite direction, with sluggish demand hampering the impact of bullish sentiment around lower milk supplies.

“Chinese consumer confidence is low and European origin product is now at a disadvantage into Asia as a result of the ongoing shipping issues through the Suez,” the statement said.