Kerry Group has today (Wednesday, February 16) confirmed that it is to increase its base price for milk supplied during January.
The processor has said that its base price for last month will be 41c/L, including VAT, for milk with constituents of 3.3% protein and 3.6% butterfat.
That is an increase of 1.75c/L on the base price paid to suppliers in December.
At European standard constituents of 3.4% protein and 4.2% butterfat, this base price translates to 44.97c/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 47.61c/L.
For supplies during December, Kerry paid a base price of 39.25c/L, including VAT. That was 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.
Milk price
Yesterday, Glanbia Ireland confirmed its base price for January supplies will be 40.08c/L including VAT on milk at 3.6% butterfat and 3.3% protein.
This is an increase of 0.5c/L from the price for December, which was 39.58c/L.
The processor outlined that the base price along with bonuses, including a new Sustainability Action Payment, could see suppliers reach a potential 44.58c/L for January.
Meanwhile, last Thursday (February 10), Lakeland Dairies announced that it would increase its base price for January by 1c/L.
This will mean that farmers will be paid 41c/L, inclusive of lactose bonus and VAT, for milk at 3.6% fat and 3.3% protein for milk supplied during January.
In Northern Ireland, Lakeland Dairies has increased its milk price by 0.8 p/L to 32.7p/L.
However, the IFA Dairy Committee chair stated that the price set by Lakeland “doesn’t reflect market trends”.
Stephen Arthur said that 41c/L was not good enough when the Ornua Purchase Price Index (PPI) “returned a farm gate price of 45.8c/L” last month.