Kerry Group’s milk suppliers have just one month left to apply to enrol in its fixed milk price scheme, with the deadline for applications closing on Friday, September 29.
Suppliers of the processor received letters detailing the scheme earlier this week.
They are invited to partake in the 3-year scheme, which would see them receive a fixed milk price of 31c/L – VAT inclusive – for a portion of the milk produced on their farm between March and October.
Under the scheme, Kerry’s suppliers would have the choice of opting in to a contracted milk supply of 5%, 10% or between 11% and 20% during the 8-month period of 2018, 2019 and 2020.
The fixed price of 31c/L including VAT is based on milk produced at 3.3% protein and 3.6% butterfat.
That announcement represented Kerry’s third consecutive monthly milk price increase, following on from 1c/L increases announced for both May and June milk.
Prior to that Kerry hadn’t altered its milk price since the first month of the year, when it increased its price by 2c/L.
Processors are expected to meet in the coming weeks to announce their milk prices for August supplies.
Glanbia’s fixed-price milk contract and loyalty scheme
Glanbia also launched a 5-year fixed-price milk contract and loyalty scheme in mid-August. The scheme includes a €30/t loyalty bonus on concentrate dairy feeds purchased from Gain Animal Nutrition.
It also incorporates a fixed base milk price of 31c/L, including VAT, for milk produced at 3.6% butterfat and 3.3% protein. A ‘Feed Adjustor’, valued at between 2c/L and 3c/L, for those taking part in the dairy feed element of the Glanbia Loyalty Scheme is also included.
Glanbia Ireland milk suppliers that avail of the feed option will have priority to the milk pool available in the loyalty scheme, according to the company.