Kerry defends its stance on July milk price
'Market positions' to blame for decision to stay at 22.5c/l
Published 23/08/2016 | 02:30
Kerry Group has rejected criticism of the decision not to increase its July milk price.
The company held its base price at 22.5c/l, although the other leading dairy processors sanctioned increases of between 1c/l and 1.5c/l.
IFA president Joe Healy said Kerry were wrong not to increase prices and he called on the company's management to revisit this decision "for the sake of their cash-strapped suppliers".
However, a spokesman for Kerry pointed out that the company had supported milk price through "this year and last year".
He welcomed the "improved signals" in global dairy markets and predicted that this would "undoubtedly be reflected in improved market returns."
But he said Kerry had "market positions taken already" and the company would "have to honour current commitments".
Over the last week Dairygold increased its base price for July to 24c/l. Glanbia is on 23c/l for July supplies, Lakeland Dairies is on 24c/l and Arrabawn on 24.25c/l.
The GDT jumped by 12.7pc last week as a serious rebound in world dairy markets gathered pace, and the farm organisations want dairy processors to pass back the benefits of the higher prices available to their milk suppliers.