Kerry Group announces its April milk price
Kerry Group has announced its base price for April milk supplies at 30.5c/L (VAT inclusive).
Based on average April milk solids, the price return inclusive of vat and bonuses is 32.63c/L, a spokesperson said. It paid 31c/L for March milk supplies.
ICMSA Dairy Committee Chairman Ger Quain said that Kerry suppliers are very angry with the decision by Kerry Group to cut the price of milk for April Supplies by 0.5c/L and he said the decision was particularly reprehensible in light of the fact that current market indicators show that the prices on World, European and Irish markets had all strengthened in the last month as illustrated by the rebound of the Ornua PPI of half a cent per litre for April.
“The Dutch Dairy Quotations showed prices above 33cpl for the month of April when averaging WMP, Butter and SMP, while the GDT has scored an impressive 11 consecutive positive results”, said Mr Quain, before noting that global milk supplies are actually falling with EU supplies stable.
“All market indicators - apart from concerns in relation to Brexit - are positive and how a half cent cut to 30.5cpl is inferred or derived from this current market is very hard to understand and is unjustified in ICMSA’s view. This drop goes against all the indicators and the suppliers of Kerry have every right to ask what the basis for this cut is," he said.
It comes after Glanbia and Lakeland Dairies both held their milk price for the month of April.
Lakeland Dairies is paying 31.28c/l (including VAT) for milk supplied in April. The base price has been held from March.
In Northern Ireland, a price of 25.25p/l will be paid for April supplies, with the base price also being held.
Commenting on the price, the Co-op said: “The ongoing uncertainty in the European dairy markets continue to cast a shadow on the sector.
“In terms of production, the news is positive with supply in the main milk producing countries under pressure. However, in terms of demand, the situation is sluggish in Europe with stores still full of product as a result of the uncertainty of Brexit.”
Glanbia confirmed earlier this week that it is paying a base of 30.5c/L, including a co-op support payment of 0.5c/L.
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