Dairy processors lifted milk prices across the board for December milk supplies.

Tirlán announced a base price of 33.88c/l, excluding VAT, for December milk, a rise of 1c/l on November’s price.

Including the sustainability action payment of 0.48c/l, excluding VAT, the price comes to 34.36c/l, excluding VAT. Carbery is paying a base price of 33.76c/l, excluding VAT, for December milk supplies, which is a rise of 1c/l.

Kerry Group also moved in the same fashion, increasing its milk price for December by 1c/l, offering a price of 34.3c/l, excluding VAT. This is a slight rise on November’s base price of 30.5c/l, and the milk contract payment of 2.9c/l, excluding VAT, is paid on qualifying supplies.

Tirlán chair John Murphy said that the increased base milk price again this month reflects recent improvements on global markets.

“The main driver of increased market returns continues to be the reduction in milk supply from some key regions. Demand trends will need to be closely monitored given the inflationary pressures and geopolitical tensions,” Murphy explained.

Meanwhile, a spokesperson for Kerry said that despite strength in commodity dairy markets towards the end of 2023, uncertainty remains around the demand outlook, with a particular emphasis on the dynamics within the Chinese market.