Kerry Dairy Ireland has kept its 2.87c/l ex-VAT milk price top-up in place for February’s supplies, as it left last month’s base milk price unchanged from January at 33.01c/l exclusive of VAT but inclusive of quality and sustainability bonuses.

The co-op said that this equates to a base milk price of 39.31c/l ex-VAT at standard EU constituents of 3.4% protein and 4.2% fat.

Kerry Dairy Ireland’s suppliers are to receive 41.44c/l ex-VAT including their milk quality and sustainability payments, as well as the top-up, for last month’s milk at average delivered solids.

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“Commodity prices have strengthened in recent weeks, despite continued growth in global milk production,” the co-op said on announcing February’s milk prices.

“The ongoing conflict in the Middle East presents a potential headwind, with the prospect of reduced purchasing activity from the region.”

Shipping costs

The sounding of concern with the Middle East from Kerry Dairy Ireland’s board room comes after Bord Bia warned that the fallout from the conflict in Iran could add to shipping costs for Irish agri-food exports to the region, as well as hitting its tourism-related demand.

However, its positive sentiment on global commodity prices follows a 5.7% price lift at the latest Global Dairy Trade auction index in the fifth consecutive trading event that saw the index rise.

Lakeland Dairies and Dairygold have also held their February base milk prices.