Pressure mounts on co-ops to match 34c/l milk price
IFA welcomes increase for June
Published 12/07/2011 | 05:00
Pressure is mounting on co-op boards across the country to match the 34c/l VAT inclusive milk price set for June by Kerry, Glanbia and Town of Monaghan.
Kerry ratcheted up the pressure even further yesterday afternoon by announcing that it would also pay farmers an additional 1c/l, backdated, for April and May milk supplies.
Town of Monaghan also increased its price by 1c/l last week, bringing it to 34c/l for June.
A spokesman for Kerry said that its milk price increase from 33c/l to 34c/l for June, and the backdated 1c/l for April and May, were agreed after a review of its contracts.
"The Group has secured its market position for the majority of this year's production and revised the milk price accordingly," he said.
Glanbia announced on Friday that it would increase the June manufacturing milk price by 1c/l to 34c/l including VAT.
The Kerry and Glanbia moves will put dairy co-ops across the country under pressure to follow suit when their boards meet this week to set milk prices for one of the key milk supply months of the year.