Kerry Group has announced that it will pay farmer suppliers 35.07c/l excluding VAT for their May milk.
The May price is down just under 1c/l from the 36.02c/l excluding VAT that farmers received for April milk.
It will be paid out at 3.3% protein and 3.6% butterfat.
A Kerry Group spokesperson said that “global dairy markets continue to struggle with significant demand uncertainty”.
“This uncertainty is largely attributed to a misalignment of income with inflated prices and rising interest rates, resulting in weakened purchasing power."
“The structural transformation of the dairy industry in China is compounding inflationary based demand uncertainty. The emphasis on domestic milk production and resulting output growth has reduced China’s reliance on global suppliers.
“Global milk production is still positive, but is currently experiencing a noticeable deceleration,” they said.
Kerry Group is the second major processor to announce its May milk price.
On Tuesday, Lakeland Dairies announced that it will pay farmers 35.40c/l excluding VAT for their May milk supplies.
The Lakelands price will be paid for May milk at 3.6% fat and 3.3% protein and is a cut of almost 1.5c/l on the price farmers received for their April supplies.