Kerry Group is the first milk processor to announce its price for June supplies.
The group has today (Monday, July 11) announced that its base price for June milk supplies will increase to 53.5c/L, including VAT, at 3.3% protein and 3.6% butterfat.
This reflects an increase in price of 2c/L compared to the base price paid for May supplies (51.5c/L).
The price is 58.56c/L (incl. VAT), at EU standard constituents of 3.4% protein and 4.2% butterfat.
Based on Kerry’s average milk solids for June, the milk price return inclusive of VAT and bonuses is 57.08c/L, according to the processor.
Milk price
Kerry’s announcement of its latest milk price is in the context of EU dairy prices being at record levels.
However, farms’ margins remain tight; milk collection looks set to drop by 0.6%; while butter exports are due to rise by 2% in 2022. These were just some of the highlights contained in the EU’s latest Short-term outlook for EU agricultural markets in 2022, published last week.
Since the beginning of the year until mid-June, dairy prices grew by around 25% for skim milk powder (SMP) and cheeses, and by 30% for butter and whole milk powder (WMP).
Prices for EU whey powders lag behind this, by 16%.
Milk supplies
The EU report also indicated that from January to April, EU milk deliveries dropped by 0.6%. Among the largest-producing countries, only deliveries in Poland, Italy and Denmark grew by 2.4%, 0.4%, and 0.6%, respectively.
Germany, France and the Netherlands continued to decline, however, down 1.7%, 1.3%, and 2.3%, respectively.
Irish milk deliveries dropped as well, down 0.7%, compared to an exceptionally high level of last year.
Warm and dry weather during spring – causing heat stress to cows and affecting grass and crop development – combined with high feed costs and the difficulties of sourcing genetically modified (GM)-free feed in Germany, resulted also in a drop of milk fat and protein availability.