Kerry Co-op has said that it will continue to push for further top-payments on the 2023 milk price for Kerry Group milk suppliers.
Last week, Kerry Group announced that it would issue a milk price top-up payment to its suppliers for milk supplied in the final six months of 2023.
The processor said that it would pay 1c/L, including VAT, for all qualifying milk solids supplied in the period from July to December 2023.
Kerry Group said that the payment was made to suppliers last Friday (December 5).
Kerry Co-op
In a statement issued today (Tuesday, January 9), the board of Kerry Co-op acknowledged the interim top-up payment by Kerry Group.
The board said that it “recognises this payment as representing part-payment of Kerry Group’s contractual commitment to pay ‘the leading milk price’ to its milk suppliers for 2023”.
Kerry Co-op added that it will work constructively with the processor through its leading milk price committee to ensure that the outstanding balance is paid in due course.
Commenting on the issue, the new Kerry Co-op Chairman, James Tangney said:
“While the milk production year has only ended and accounts for the year have yet to be completed, our members can rest assured that we will pursue our negotiations on the top-up payments needed to deliver a satisfactory final milk price for 2023.”
Kerry Co-operative, which is this week celebrating 50 years since its foundation, is the largest shareholder in Kerry Group plc.
Top-up payment
Irish Farmers’ Association (IFA) dairy chair, Stephen Arthur previously told Agriland that the Kerry Group top-up price is “not enough”, and that more payments are needed.
While acknowledging that that any payment was welcomed as farmers grapple with costs, Arthur said that Kerry Group has been “lagging behind the whole year”.
“Look at the costs in producing milk versus the price farmers are being paid. Kerry dairy farmers have been left at a complete disadvantage this year.
“I think the group should be able to deliver a better price, farmers need every penny they can get,” he said.
Last month, Kerry Group confirmed that it will pay 35c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat for November milk supplies. The price has remained unchanged since August.
The price consists of a base price of 32c/L and a milk contract payment of 3c/L, inclusive of VAT, on all qualifying milk volumes.
In a statement issued at that time, a spokesperson for the processor said: “Sentiment with regard to dairy commodities remains tentatively positive for 2024 as a turbulent 2023 comes to a close.
“The questions around the robustness of the market fundamentals underpinning that positivity still remain and underscore the evident uncertainty.”