Kerry's price hold is welcomed
THERE were mixed messages for dairy farmers after Kerry Group's board opted to hold the company's milk price for May at 39c/l but Carbery cut returns by 2c/l to close to 37c/l.
Kerry's decision to hold the milk price breaks the general trend set over the past week by Lakeland Dairies, Glanbia, and now Carbery, who all dropped their base price by 2c/l to 37c/l.
However, the move by Carbery may not be immediately reflected in a milk price cut to farmers as its constituent co-ops – Bandon, Barryroe, Drinagh and Lisavaird – set their milk prices separately and may decide to hold their quotes.
Town of Monaghan also pulled its price last week, cutting their base by 1c/l to 38c/l.
Kerry's move will put pressure on Dairygold, Arrabawn and Aurivo, who are due to meet this week.
To-date processors have attributed the drop in milk prices to weaker world dairy markets.
This was reflected last week by the Irish Dairy Board's (IDB) decision to cut its butter price by €75/t and skim milk powder (SMP) by €100/t.
The IDB price for butter has fallen from €4,100/t to €3,250/t since January, while its quoted price for SMP dropped from €3,150/t to €2,750/t.