Kerry Group has maintained its milk price for September and is paying farmers 33.18c/l, excluding VAT, on all milk supplied at 3.3% protein and 3.6% fat.

This base price, according to Kerry, includes a milk contract payment of 3c/l on all qualifying milk volumes.

In a statement Kerry said: "While increasing butter and skim futures seem to be reflecting some concern around dairy commodity supply for next year, demand continues to underwhelm in the short term.

Supply

"The supply side in terms of milk volume has softened across the major exporters, but an increase in milk solids is also dampening some of the anticipated market effect."

Last week, Lakeland Dairies announced that it is also holding its milk price for September.

The co-op will pay farmers 32.22c/l, excluding VAT, at 3.6% butterfat and 3.3% protein for their September milk supplies, the same price they received for their August milk.