Kerry Group holds milk price for December supplies

FarmIreland Team

Our Kerry Group base price for December milk supplies remains unchanged at 32cpl vat inclusive. Based on average December milk solids, the price return inclusive of vat and bonuses is 39.5cpl.

Glanbia and Lakeland Dairies to hold milk prices for December supplies at 32c/l and 32.06c/l (including VAT) respectively.

Lakeland Dairies will also pay an extra 5c/l Voluntary December Bonus to qualifying suppliers, based on peak to trough supply ratios. The co-op reported that milk supplies for December were up 17pc compared to 2017.

Glanbia's returns include a 2c/l support payment from Glanbia Co-op, on top of a base price of 30c/l from Glanbia Ireland.

The farm organisations welcomed the processors' decision to hold December milk prices. Tom Phelan of the IFA said it was "the right thing to do in the current market context" given the challenging cashflow situation facing many dairy farmers.

He urged all co-ops to follow the lead of Glanbia and Lakelands and called on those that had cut their October or November milk prices to carefully review the situation.

Confidence

Ger Quain of ICMSA said the decision by Lakelands and Glanbia was reflective of improved confidence in global dairy markets.

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Last week's increase of the Ornua PPI index to 107.5 for December - up 2.6 points on November and equating to a VAT-inclusive milk price of 32.2c/l - and the latest lift in the GDT were indicative of a major shift in market sentiment, the farm representatives claimed.

This was confirmed by the recent sale of more than 80,000t of SMP from EU intervention stocks, leaving just 22,000t to be sold.

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