Kerry Group has today (Wednesday, May 18) offered a 5c/L subvention to milk suppliers in forward price schemes in 2022.
Agriland understands that the processor wrote to suppliers detailing the offer which is based on constituents of 3.3% protein and 3.6% butterfat.
In order to avail of this subvention, suppliers must commit milk volume to a 2023 forward price scheme – from March to October.
It is understood that the maximum allowable volume commitment is the total that each supplier has committed to forward price schemes this year.
Agriland believes the subvention will be paid in proportion to volume committed to this 2023 forward price scheme.
The new scheme will open for participation on Friday (May 20), with the closing date for entry on Monday, May 23, at 2:00p.m.
Milk suppliers will receive an indicative price for the 2023 scheme tomorrow (Thursday, May 19).
Fixed milk-price suppliers
On Monday (May 16), Agriland reported that Carbery will be making a one-off 5c/L payment to its suppliers on fixed-milk contracts.
The payment will be based on milk suppliers’ annual volumes and will be paid this month.
Last week, Lakeland Dairies announced that it is increasing the price paid to farmers on existing fixed milk-price contracts.
In the Republic of Ireland, all fixed milk volumes will receive an 8c/L supplementary payment from April 2022–December 2022 inclusive.
In Northern Ireland the corresponding payment will be 7p/L on all milk in fixed-price schemes for the same months.
Glanbia also confirmed that it agreed to pay a 3c/L Agri-Input Support Payment on all milk supplied in April in response to record farm input costs.
Aurivo has confirmed to Agriland that it is “currently reviewing the fixed milk-price scheme situation and its impact on farm and on customers”.
The company said that it will “continue to pay the maximum price possible from what the current market returns”.
Dairygold said that it continues to work proactively with milk suppliers on an individual basis to address any cash flow concerns they may experience.