Kerry Dairy Ireland Keeps February Milk Price at 37.5c/L

Kerry Dairy Ireland has set its February milk payment at 37.5 cents per litre, retaining the rate paid for January supplies. The announced figure includes VAT as well as quality and sustainability bonuses under the processor’s standard pricing arrangements.

Using the European Union’s standard milk constituents of 3.4% protein and 4.2% butterfat, the payment is equivalent to 41.08 cents per litre including VAT. The calculation provides a common reference point for comparing the announced price with milk of standard composition.

The equivalent payment based on the average milk solids supplied to Kerry Dairy Ireland in February is 43.3 cents per litre, also including VAT and bonuses. The higher figure reflects the composition of the average supply compared with the standard EU calculation.

In its February statement, the processor said dairy commodity prices had strengthened in recent weeks even as global milk production continued to grow. The statement linked the decision to hold the price to recent commodity-market conditions, while noting that supply growth remains part of the market environment.

Kerry Dairy Ireland also identified the conflict in the Middle East as a source of uncertainty for dairy sales. It said the conflict could hinder milk sales if countries in the region reduced their purchases. The processor did not specify the size or timing of any possible change in regional demand.

The February payment gives suppliers the same announced rate as in the preceding month. Kerry Dairy Ireland’s pricing figures distinguish between the standard constituent calculation and the average milk-solids result, with protein and butterfat levels affecting the effective payment under its pricing system. The processor’s statement said future market conditions would be shaped by global milk supply, commodity prices and demand in international markets.