A forward milk price of 40.95c/l, excluding VAT, is being offered by Kerry Group for milk supplied between March and October.

Online applications for the new scheme opened yesterday.

The latest forward price from Kerry is 5.71c/l, excluding VAT, higher than the company’s previous offering and is indicative of the stronger outlook for dairy commodities on global markets.

Spot prices for butter have increased €400/t to €5,900/t since the start of the year on the back of hotter demand, even though returns for dairy powders have been more or less unchanged.