Kerry Group has increased its milk price for February.
The price paid to suppliers is 40 cent per litre, including VAT, up from 39 point 5 cent per litre.
This includes VAT for milk supplied last month at 3.3% protein and 3.6% butterfat consisting of a base price of 38 cent per litre and a milk contract payment of 2 cent per litre on all qualifying milk volumes.
The February milk price at EU standard constituents - consisting of 3.4% protein and 4.2% butterfat – is 43.88 cent per litre.
Based on Kerry’s average milk solids for last month, the price return inclusive of VAT and bonuses is 43.35 cent per litre.
Kerry Group says global consumer demand is improving, however dairy buyers remain cautious.
It says milk production growth is sluggish leading to optimism around dairy prices in the medium term.
