Kerry Group has announced that is will pay its suppliers an unchanged base price for October milk.
The processor’s base price offering will be 56c/L including VAT, at constituents of 3.3% protein and 3.6% butterfat.
Based on standard European constituents of 3.4% protein and 4.2% butterfat, the base price converts to 61.28c/L.
Based the average milk solids supplied to Kerry Group for October, the average milk price return to farmers, inclusive of VAT and bonuses, is 70.97c/L.
Kerry will also pay an additional 1c/L, including VAT and based on standard constituents, on October volumes as part of its contractual commitment.
An ex-gratia payment of 1c/L, including VAT and based on standard constituents, will also be made on milk volumes supplied under fixed price contracts in October.
Today’s milk price announcement from Kerry Group follows a trend of processors holding their milk prices.
Yesterday (Wednesday, November 16), Tirlán announced that it had decided to offer an unchanged milk price to its suppliers for the month of October.
The co-op will pay an overall price of 58.08c/L for last month’s milk, based on contents of 3.6% butterfat and 3.3% protein.
This overall price is broken down as follows:
- A base milk price of 51.08c/L including VAT;
- An Agri-Input Support Payment of 6.5c/L for all milk supplied last month, including volumes in fixed price contracts;
- A Sustainability Action Payment of 0.5c/L, including VAT, is being paid monthly on all milk supplied in 2022 to recognise specific sustainability actions being undertaken on-farm.
The base price and two additional prices will be adjusted to reflect the actual constituents of milk delivered by suppliers.
Based on European standard constituents of 4.2% butterfat and 3.4% protein, the overall price (including the Sustainability Action Payment and the Agri-Input Support Payment) is 63c/L.
Tirlán has also confirmed that seasonality payments will apply over the months of December, January and February.
A Seasonality Bonus of 4c/L, including VAT, will be paid on all non-contracted milk volumes supplied during December that meet quality criteria.