Kerry announces ‘Forward Price Scheme 2’ for suppliers

Kerry Agribusiness has announced the next offer of its Forward Price Scheme facility for suppliers.

Applications for ‘Kerry Agribusiness Forward Price Scheme 2’ will open for Kerry Agribusiness milk suppliers online next Tuesday, August 14, at 2:00pm and will close at 2:00pm on Wednesday, August 15.

The ‘Scheme 2 Indicative Price’ is between 31.6c/L and 32.6c/L, and will run from September-October 2018 and March-October 2019, at solids of 3.30% protein and 3.60% butterfat including VAT.

The offer price will be confirmed on Tuesday, August 14, the company has confirmed.

The forward price on offer will be inclusive of all bonuses payable during the scheme period to suppliers for milk supplied outside the scheme – such as Sustainable Dairy Assurance Scheme (SDAS) and SCC bonus – the company added.

The price will be subject to deduction of penalties in accordance with the prevailing milk grading scheme.

Milk suppliers will have less than 24 hours to log on to the Kerry Agribusiness Online Services and apply for the volume of milk they wish to commit to the forward price scheme.

Under the scheme, suppliers can apply for a minimum of 1% and a maximum of 20% of their annual contracted milk volume.

Kerry will endeavour to meet supplier applications in full but, if demand exceeds supply, allocations will be adjusted proportionally. This was not an issue in the first forward price scheme and all applications were accepted in full.

To avail of the forward price scheme, milk suppliers must be registered for Kerry Agribusiness Online Services.