Kerry Group has announced it will pay farmers 41.90c/l, excluding VAT, for all February milk supplied at 3.3% protein and 3.6% fat.

This is a reduction of over 5c/l from January, when the processor paid its suppliers 47.39c/l, excluding VAT, for milk supplied.

Kerry suppliers are now down in excess of 11c/l from December's milk cheque.

Kerry Group is the second milk processor to cut milk price for January this week, following Lakeland Dairies, which announced a 6c/l reduction on Monday 13 March.

Kerry Group's board made no comment on the cut to milk price.

However, Lakeland Dairies said the co-operative’s milk price was reduced for February, as weaker dairy market conditions continue to have a serious effect on market returns.