Kerry Group has offered suppliers an extra .95c/l, excluding VAT, for February supplies.

This brings the co-op's base price to 36.2c/l, excluding VAT, for all milk supplied at at 3.3% protein and 3.6% fat.

A milk contract payment of 1.9c/l will also be paid on all qualifying milk volumes, excluding VAT, which is down 0.5c/l from last month.

A spokesperson for Kerry Group said that dairy buyers remain cautious but global consumer demand is improving which should lead to improved dairy demand.

"Milk production growth is sluggish leading to optimism around dairy prices in the medium term," they said.