Farming

| 26.5°C Dublin

Kerry announces its January milk price

Close

Kerry has announced its latest milk price statement

Kerry has announced its latest milk price statement

Kerry has announced its latest milk price statement

Kerry Group has announced that it will pay suppliers 32c/L (including VAT) for January milk supplies at 3.3pc protein and 3.6pc butterfat.

In a statement, Kerry also presented its January base price as 35.17c/L (including VAT) at EU standard constituent values of 3.4pc protein and 4.2pc butterfat.

Based on Kerry’s average milk solids for January, the milk price returns inclusive of VAT and bonuses is 37.9c/L.

Kerry paid a base price of 31.56c/L (incl VAT) for December milk and said at the time that based on average December solids the milk price return inclusive of vat and bonuses was 39.343c/L.

New price metrics

Last week, Dairy Industry Ireland (DII) came under fire from the country’s farm organisations for announcing changes to milk price metrics without farmer consultation.

The dairy processor representative body revealed that “an extra line” would be added to monthly milk price statements to “allow for a better comparison” of Irish milk prices with standard EU milk prices.

As such – and in parallel with the current 3.6pc / 3.3pc model – each milk processor will now also express their milk price on the basis of 4.2pc butterfat and 3.4pc protein (the EU standard).

Although the current pricing model will be retained, ICMSA and IFA have criticised the move.

Stephen Arthur acting IFA Dairy Committee chairman said IFA has written to all milk processors outlining its opposition to the change and requested that the letters be read out at all milk processor board of management meetings next month.

“This is a change sought solely by management, not by suppliers, and must be reversed. It’s all for optics.

"Processors want to look like they are paying more for milk when nothing has changed – we are still getting the same price for our milk as we did 25 years ago,” he said.

Farming Newsletter

Get the latest farming news and advice every Tuesday and Thursday.

This field is required


Most Watched





Privacy