Kerry Group has today (Wednesday, February 21) announced a new forward price scheme offer to milk suppliers, which would set a price of 43c/L, inclusive of VAT.
The processor said that this is based on constituents of 3.6% butterfat and 3.3% protein.
The scheme, which includes a feed and fuel price adjustor, applies for the period from March-October 2024.
In a message to suppliers, the processor said that the latest forward price scheme would open for online applications at 3:00p.m today and remain open for 24 hours.
Last month, Kerry Group offered its suppliers a forward price scheme at 37c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat.
That forward price scheme was for the period March to October 2024.
The price set for this latest forward price scheme is above the most recent base milk price offered by the processor for January supplies.
On Monday (February 19), Kerry Group confirmed that it would pay suppliers 39.5c/L, including VAT, for milk supplied last month at 3.30% protein and 3.60% butterfat.
This consists of a base price of 37c/L, including VAT, and a milk contract payment of 2.5c/L, including VAT, on all qualifying milk volumes.
The January milk price at EU standard constituents of 3.4% protein and 4.2% butterfat is 43.3c/L, the processor said.
Based on Kerry Group’s average milk solids for January, the milk price return inclusive of VAT and bonuses is 46.7c/L.
“Dairy markets remain volatile and without definite direction, with sluggish demand hampering the impact of bullish sentiment around lower milk supplies.
“Chinese consumer confidence is low and European origin product is now at a disadvantage into Asia as a result of the ongoing shipping issues through the Suez,” a Kerry Group spokesperson said.