Kerry Dairy Ireland's milk price for February milk supplies has dropped below 50c/l, excluding VAT, for February supplies.

It is paying a price of 49.92c/l, excluding VAT, inclusive of a base-price top-up of 0.95c/l, excluding VAT, as well as quality and sustainability bonuses.

This is down from a price of 50.9c/l, excluding VAT, for January supplies.

Based on Kerry Dairy Ireland’s average milk solids for February, the milk price return exclusive of VAT but including quality and sustainability bonuses is 57.1c/l.

Geopolitical uncertainties

A Kerry Dairy Ireland spokesperson said that despite geopolitical uncertainties, demand for butter and cheese remains strong, while demand for powders is weaker.

"Although the European milk production season began slowly, it is expected to gain momentum in the short term, which could exert some downward pressure on prices," according to a spokesperson.