Kinisla Raises July Milk Payments as Dairy Market Remains Uncertain

Kinisla’s revised July payment is calculated using standard Irish milk constituents of 3.3% protein and 3.6% butterfat. The rate includes VAT as well as quality and sustainability bonuses.

Using standard European constituents of 3.4% protein and 4.2% butterfat, the payment is equivalent to 42.82 c/l including VAT. Based on the average milk solids supplied to Kinisla in July, the corresponding payment is 42.25 c/l. Actual payments vary according to milk composition, bonuses and contractual terms.

Kinisla said dairy prices could receive greater support if European milk production continues to fall during the second half of the year. It also said that reduced product availability could support prices if demand increases from current levels.

The processor is offering a discount of up to €50 per tonne on selected dairy feeds. The offer applies from Friday, 14 August, to Saturday, 5 September, and is intended to assist suppliers during prolonged dry weather and drought. Dry conditions can reduce grass growth and increase the need for supplementary feed.

Suppliers will also receive a top-up for milk delivered under their supply contracts between 1 January and 30 April. Kinisla said the additional payment will be included in the August milk payment.

The measures cover milk supplied in July, feed purchases during the specified promotion period and eligible deliveries made earlier in the year. They were announced as dairy farmers faced weather-related production pressures, operating costs and uncertainty about market demand.