Kerry Dairy Ireland (KDI) has announced it will cut its milk price by 2.87c/l excluding VAT for last month’s supplies.

It will pay a base price of 31.67c/l excluding VAT for December’s milk.

This comes following a 3.32c/l excluding VAT fall for November supplies and marks the fifth month of significant reductions.

ADVERTISEMENT

At EU standard constituents of 3.40% protein 4.20% butterfat, Kerry Dairy Ireland’s milk price comes to 36.14c/l excluding VAT.

Based on Ireland’s average milk solids for December, the milk price return inclusive of quality and sustainability bonuses is 42.44c/l excluding VAT.

A spokesperson for KDI said: “Global milk production remains strong, particularly across Europe.

“Continued growth in output, coupled with high inventory levels and muted demand from the food service sector, continues to exert downward pressure on the dairy market.”