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Kerry Group has cut its milk price for March supplies to 38.1c/l excluding VAT at 3.4% protein and 4.2% butterfat.
The price represents a near 4c/l drop on the 41.9c/l Kerry Group suppliers received for their February supplies.
A spokesperson for the dairy processor says it will also pay an additional 2c/l on January, February and March volumes as part of its contractual commitment.
“Dairy markets are currently experiencing a significant downturn, which is manifested in sluggish demand for dairy commodities.
"As a result, commodity prices have experienced a significant decline, reaching levels that cannot sustain current milk prices.
“Furthermore, the elevated costs of both farm and factory operations are exacerbating the challenging outlook for profitability among all stakeholders in the dairy industry,” the spokesperson said.
Competitors
Kerry Group is the second of Ireland’s major dairy processors to announce the milk price it will pay farmers for their March milk.
Last week, Lakeland Dairies also chopped a further 4c/l off its milk price for March supplies, with farmers to receive 40.81c/l excluding VAT for milk at 3.6% fat and 3.3% protein.
This is down from the 44.61c/l excluding VAT that Lakelands paid farmers for their February supplies.
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