Milk prices bounce as markets recover
Kerry finally ups its price by 2c/l as IDB's index climbs 14pc in two months
MIlk price increases across the board are on the cards as dairy commodity values continue to strengthen.
The Irish Dairy Board (IDB) milk price index rose again this month to 104.9, more than 14pc higher than its July equivalent. It brings the IDB's returns to within two points of July 2011's milk price.
Both Glanbia and Town of Monaghan have increased their milk prices for the second month in a row by 1c/l to a VAT inclusive price of 31c/l.
However, the biggest jump came from Kerry, with the company increasing its milk price by 2c to bring it in line with the price being paid by Glanbia and Town of Monaghan.
The 7pc hike comes on the back of the announcement that Kerry has formalised a long standing partner-ship with Chinese dairy giant, Beingmate.
Kerry management believe that this outlet for ingredients in premium infant formula products will increase over time.
Dairy farmers' attention will now focus on the country's largest co-op, Dairygold, who are trailing on a milk price of 29c/l.
The IFA's Kevin Kiersey said that the increases were fully justified, despite the news that Fonterra auction prices slipped by 0.9pc last week.