Kerry Group has announced that it will pay suppliers a base price of 34c/L for July milk, plus a milk contract payment of 3c/L on qualifying milk volumes.
Suppliers who will be in line for the additional payment will see a price offering of 37c/L, including VAT, at 3.3% protein and 3.6% butterfat.
Kerry Group said that, based on its average milk solids for July, the milk price return inclusive of VAT and bonuses will be 40.19c/L.
A statement from the processor said: “The outlook on commodity dairy continues bearish, with further downward pressure on European and global pricing.
“Dairy demand continues to struggle with no sign currently of any near-term correction.
“On the supply side, milk production across the major exporters continues in weak positive territory with volumes more than enough to meet subdued demand,” the statement added.
The base price for July milk of 34c/L reflects a 3c/L reduction on the base price for supplies in the two preceding months of 37c/L.
Kerry Group’s monthly milk price announcement for July comes a week after the business confirmed that it is offering its suppliers a forward price scheme at 33.5c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat.
This forward price scheme is for the period March to October 2024, and includes a feed and fuel price adjustor.
A statement from Kerry Group said that the feed and fuel price adjustor “helps limit participants’ exposure to inflation input prices during the period of the scheme”.
However, reaction to this forward price scheme from suppliers was mixed.
That organiser of a protest at the Kerry Group processing facility in Charleville, Co. Cork, in late June criticised the forward price scheme.
Gerald Quain, who is a former chairperson of the Dairy Committee of the Irish Creamery Milk Suppliers’ Association (ICMSA), organised the first of two protests that took place within the last two months, sparked by disaffection by Kerry Group’s milk price.
The Charleville protest took place on June 20. The second protest took place at Kerry Group’s Tralee offices on July 11.
Speaking to Agriland last week, Quain suggested that it is unlikely the scheme would have seen significant uptake, and saying that he himself was “very displeased with it”.
“I can’t see any farmers making money out of it… The feedback I’ve got is that it isn’t worth going for,” Quain had said.