Kerry Dairy Ireland Announces Further Milk Price Reduction for October

Kerry Dairy Ireland has confirmed a reduction in its milk price for supplies delivered in October, setting the price at 41c/L, inclusive of VAT, quality, and sustainability bonuses. This marks a decrease fr om the September price of 44.53c/L, down from 47.53c/L in August.

At EU standard constituents of 3.4% protein and 4.20% butterfat, the October price is 44.84c/L, VAT inclusive. Based on Kerry Dairy's average milk solids for October, the return is 52.67c/L, including bonuses.

The company stated that market sentiment remains subdued due to global milk production outpacing demand. They noted, "It has been some time since the growth in supply has so clearly exceeded the growth in consumption."

Pat Murphy, CEO of Kerry Dairy Ireland, highlighted the challenges ahead for dairy farmers, indicating that the next 12 months will be "very challenging." His comments were made at the Listowel Food Fair Frank Hayes Memorial Farming Seminar, wh ere he addressed the high volumes of milk production and current market difficulties.

The price reduction follows a similar move by Lakeland Dairies, which cut its milk price by 4c/L for October. In the Republic of Ireland, they set the price at 40.25c/L, including a sustainability incentive, while in Northern Ireland, the price was reduced by 3.5p/L to 32.3p/L.