Kerry increases its July milk price and considers bad weather payments to farmers
Kerry Group has announced a milk price rise of 1c/L (VAT inclusive) to its suppliers for July milk.
It comes the day after Kerry announced half year figures that showed revenue growth of 1.4pc year on year for the first half.
Kerry will pay milk suppliers 32c/L (VAT inclusive) for July milk it said today.
Kerry Group CEO Edmond Scanlon said he is considering a new support payment scheme for the company's milk suppliers, with many farmers suffering the consequences of this year's extreme weather.
Mr Scanlon told reporters in Dublin yesterday that such a scheme was "something we're going to have to look at".
"There's a package of thing we're looking at in terms of different types of support. We have to see how the next couple of months trade out, how the weather goes... but certainly we won't be found wanting as an organisation to help out our farmers." Around 14pc of the company is owned by the Kerry co-op.
He said he was more optimistic about the prospect of a milk price increase than he was in February. "Generally speaking we'd be fairly optimistic that the milk price would hold up. At the end of the day Kerry Group doesn't set the milk price, it's a market-driven event but we are doing everything we possibly can to drive the volatility out of it."
Kerry's growth in revenue reflected volume growth of 3.6pc and a 0.6pc improvement in pricing, as well as the contribution from acquisitions, according to interim results from the group.