Kinisla raises its August milk price to 39.6c/L

Kinisla said its payment for milk supplied in August would be 39.6c/L, inclusive of VAT and quality and sustainability bonuses. The processor raised the figure by 0.5c/L from the previous month. Calculated using Kinisla’s average milk-solids results for August, the total return was 45.21c/L, also including VAT and the two bonus categories.

The processor reported that demand for dairy products remained good and that the expansion in milk production had begun to moderate slightly. Kinisla said the resulting balance between supply and demand was continuing to support commodity markets.

Lakeland Dairies’ board separately approved a base payment of 39.1c/L for August milk supplied in the Republic of Ireland. The figure includes VAT and a 0.5c/L Sustainability Incentive Payment and is calculated against standard constituents of 3.6% butterfat and 3.3% protein. It represents an increase of 0.6c/L compared with Lakeland’s July price. The co-operative said the average payout would be 44.7c/L.

For milk supplied in Northern Ireland, Lakeland set a base price of 31.4p/L for August. That payment also includes the Sustainability Incentive Payment and is 0.5p/L higher than the previous month’s level. A Lakeland spokesperson said market conditions had continued to improve during August.

Lakeland said global milk production was still high, although its growth rate was slowing. The processor said this would bring supply and demand into better balance in the months ahead. The statement did not provide a separate forecast for Lakeland’s future milk price.

Ornua’s Monthly Purchase Price Index rose to 130.4 in August from 130.2 in July. After estimated processing costs were deducted, the index implied a return of 36.2c/L, including 4.5% VAT, for milk containing 3.6% fat and 3.3% protein. Ornua said that indicative return was unchanged from July.