Kerry Group has announced a new forward price scheme offer to milk suppliers, which would set a price of 38.5c/L inclusive of VAT, a significant increase on the price it was offering in its previous scheme.
This would be at constituents of 3.6% butterfat and 3.3% protein.
Agriland understands that the scheme applies for the period March-October 2024.
Forward price increase
In the last offering in August, Kerry Group offered its suppliers a forward price scheme at 33.5c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat.
That forward price scheme was for the period March to October 2024, and included a feed and fuel price adjustor and applications for that scheme closed.
The price set for this latest forward price scheme is also above the most recent milk price offered by Kerry for August supplies.
At that time, Kerry Group announced it would pay suppliers a base price of 32c/L, including VAT, for milk supplied during the month of August.
The processor also announced that there would be a further milk contract payment of 3c/L, including VAT, on all qualifying milk volumes.
Suppliers who received the additional payment saw a price offering of 35c/L, including VAT, at 3.3% protein and 3.6% butterfat.
Kerry said that based on average milk solids for August, the milk price return inclusive of VAT and bonuses would amount to 39.80c/L.
At EU standard constituents of 3.4% protein and 4.2% butterfat, the processor’s August milk price was 38.44c/L.
Kerry milk suppliers
Last week, Agriland revealed that the southwest region of Cork and Kerry accounted for 31% of Irish milk output in 2022, making it the largest milk-producing region in the state.
According to the Central Statistics Office (CSO) Regional Accounts for Agriculture 2022 data, the Cork and Kerry region accounted for €1.6 billion in milk output.
Milk generated 55% of the region’s agricultural output according to the CSO data.