The price paid by Kerry Group for milk in the first half of 2023 is causing “frustration and anger” among farmers, according to the Irish Farmers’ Association (IFA).
The comments follow the announcement by the processor yesterday (Monday, July 17) that it had decided to maintain its base milk price of 37c/L for supplies in June.
Based on average Kerry milk supply solids for June, the average price return is expected to be 39.01c/L, including VAT and any bonuses.
Hundreds of Kerry Group milk suppliers have taken to the streets in two separate protests in Charleville, Co. Cork and at the company’s headquarters in Tralee, Co. Kerry in recent weeks.
The protestors say that they have been paid 3.7c/L less than suppliers of neighbouring processor Dairygold for all milk supplied in the first five months of 2023.
It is anticipated that the milk suppliers will stage further protests following the latest price announcement.
Milk price
A delegation from Kerry IFA recently met with management of Kerry Group with the issue of paying the leading milk price forming part of the meeting.
Kerry IFA Dairy Committee chair, Owen O’Sullivan described the discussion with the company on milk price as “constructive”.
“After the meeting, we believed that the gap in milk price between Kerry and other processors would be dealt with in the short-term.
“This hasn’t transpired to date and its absolutely imperative that it is addressed as soon as possible,” he said.
“Milk suppliers of Kerry Agribusiness are absolutely fed up of it at this stage.
“The incessant rainfall is adding huge cost and stress to dairy farmers, particularly in the Kerry catchment area.
“There was a rightful expectation that Kerry would address the substantial shortfall in milk price for the first half of the year with a top-up on milk supplied year to date in the June milk payment.
“But, yet again, Kerry farmers have been left short-changed,” O’Sullivan added.
Meanwhile, the Irish Creamery Milk Suppliers’ Association (ICMSA) has called on Kerry Group and other “low-paying” co-ops to issue a mid-year top-up payment to their milk suppliers.
Chair of the ICMSA Dairy Committee, Noel Murphy said that several co-ops had “allowed a quite shocking differential to open up between the price they paid their suppliers and that paid by comparable processors”.
He said that the 4c/L difference between the “top and bottom payers” would “be eyebrow-raising in December – but in June is a public disgrace”.
Murphy said that any prospect of further milk price cuts “can’t happen”.
In a statement issued yesterday, Kerry Group said the prices for commodity dairy have “fallen again in the past month with prices in the EU, US and GDT [Global Dairy Trade] auction moving in the same direction”.
“The demand has declined further with end users well-stocked, slow to call off existing orders, and slow to contract new volume.
“Milk supply is currently more than enough to cover falling demand adding to downward price pressure,” a spokesperson for the processor said.