Kerry Group has announced that it is increasing its base price for milk supplied during the month of December.

The processor today (Monday January 17) confirmed that the base price will increase to 39.25c/L, including VAT at constituents of 3.3% protein and 3.6% butterfat.

That is an increase of 1c/L compared to the November price of 38.25c/L, which itself was an increase of 1.25c/L on the previous month.

At European standard constituents of 3.4% protein and 4.2% butterfat, this base price translates to 43.06c/L including VAT.

In a statement, the company said that based on Kerry’s average solids for December, the milk price return inclusive of VAT and bonuses is 49.49c/L.

Milk Price

Last Thursday (January 13) , Lakeland Dairies was the first processor to announce its price for December supplies, breaking the 40c/L barrier.

The board of Lakeland decided to increase the processor’s milk price by 0.5c/L in the Republic of Ireland.

This brought the price here to 40c/L including VAT and a lactose bonus, for milk at 3.6% fat and 3.3% protein.

Meanwhile, in Northern Ireland, Lakeland increased its price by 0.4p/L to 31.9p/L.

The processor said that global dairy markets are “relatively strong with a general balance in supply and demand worldwide and strong demand in Asia”.

In the wake of the announcement, the Irish Creamery Milk Suppliers’ Association (ICMSA) stated that it expected an upward trend in price to continue.

Later that day (January 13), Glanbia Ireland (GI) confirmed that it would pay a base milk price for December of 39.58c/L (including VAT) for creamery milk at 3.6% butterfat and 3.3% protein.

That was an increase of 1c/L (including VAT) compared to the November base price.

The processor announced that it would be paying an unconditional late supply bonus of 2c/L (including VAT).

That bonus is also paid on surplus supplies from its liquid and autumn calving scheme members.

Farmer members will receive a 0.42c/L (including VAT) payment from Glanbia Co-op on all milk supplied during December as their ‘share of GI profit’.