Kerry Group says global dairy markets remain volatile.
It says Chinese consumer confidence is low and the sector is also affected by ongoing shipping issues through the Suez.
This relates to recent attacks by Yemen’s Houthis in the Red Sea which has dissuaded many shipping companies from returning to the Suez Canal.
This week Kerry Group announced its milk prices for January.
It will pay 39.5 cent per litre, including VAT, for milk supplied last month which contained 3.3 per cent protein and 3.6 per cent butterfat.
This consists of a base price of 37 cent per litre, including VAT, and a milk contract payment of 2.5 cent per litre, which also includes VAT, on all qualifying milk volumes.
The January milk price at EU Standard Constituents is 43.3 cent per litre where it contains 3.4 per cent protein and 4. 2 per cent butterfat.
Based on Kerry's average milk solids for January, the milk price return, inclusive of VAT and bonuses, is 46.7 cent per litre.
