January milk price and top-up payment confirmed by Kerry

It has been confirmed that Kerry will hold its January milk price at 36c/L including VAT; this represents the fifth month in a row that the processor has decided to hold its milk price.

As well as this, it was announced that Kerry will pay a top-up of 0.8c/L including VAT on all milk supplied in 2017 – milk included in fixed milk price contracts will not be eligible for the top-up.

This top-up payment is being issued in order to fulfil Kerry’s milk contract commitment.

Last week, Glanbia Ireland decided to hold its milk price for January supplies.

It will pay its suppliers 35c/L including VAT for January manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

Ornua PPI holds For January

Meanwhile, it was also recently revealed that the Ornua Purchase Price Index (PPI) for January remains unchanged at 111.3.

It reflects reduced returns for butter and skimmed milk powder (SMP), offset by less lower-priced spot purchases in the month compared to December.

This equates to 33.6c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L.

This follows on from the previous month’s drop in index for December supplies; the index for the last month of 2017 dropped from 115.0 to 111.3, bringing to an end six consecutive monthly increases in 2017.