Kerry Group has increased its July milk price by 2.37c/l to pay 53.08c/l, excluding VAT, for all milk supplied at 3.3% protein and 3.6% fat.

In June, it paid suppliers 50.71c/l, excluding VAT.

Kerry is lagging behind Lakeland Dairies and Dairygold, which are both offering farmers over 54c/l, excluding VAT, for milk supplied in July.

Kerry Group said in a statement: "As part of our contractual commitment to pay the leading milk price on a like-for-like basis, milk suppliers will receive an additional payment of 0.63c/l, including VAT, at Kerry average solids on all qualifying milk supplied June year to date."

Kerry Group also said it will make an ex-gratia payment equivalent to 0.63c/l, including VAT, at Kerry average solids on milk volume under fixed price contracts for the same period.