Kerry Group has announced today (Wednesday, November 10) that it is offering out another forward price scheme to its milk suppliers for 2022.
The scheme opened for applications today at 2:00p.m, and will remain open until 2:00p.m tomorrow (Thursday, November 11).
The offer price for this forward price scheme has been confirmed at 38.5c/L including VAT at constituents of 3.3% protein and 3.6% butterfat.
The scheme will cover the period March to October 2022.
This is the third forward price scheme offered by Kerry in recent weeks.
Forward prices schemes were also announced on October 5 and October 20, each covering the period March to October next year.
These schemes saw price offerings of 35.3c/L and 37.5c/L respectively, at standard constituents and including VAT.
A Fixed Price Scheme was also announced on October 11. The offer price for this scheme was 33.1c/L including VAT. It will cover the period March to October for the years 2022, 2023, 2024.
Kerry Group’s most recent monthly milk price – for September supplies – was announced on October 13, in which the business announced a base price of 36c/L including VAT, an increase of 1c/L on the previous month’s price.
That price converts to 39.53c/L including VAT at EU standard constituents of 3.4% protein and 4.2% butterfat.
Kerry Group, along with other processors. will shortly being announcing their prices for October supplies in the coming days.
Kerry aggregate volume surpassed
At the end of last month, Kerry Group told its suppliers that it is “reviewing its approach” to milk volume management as the aggregate guaranteed volume has been surpassed.
Around the time of the abolition of milk quotas, it was agreed by Kerry Group that suppliers could increase their milk supply without any limit or cap, as long as the total aggregate milk supply across all suppliers did not increase by more than 20%.
This aggregate increase was in line with what could be handled by Kerry’s processing capacity.
At the time, Kerry Group said that, if aggregate supply increased by more than 20%, then it would look at implementing mechanisms to deal with the excess supply.
Suppliers have now been told that the aggregate guaranteed supply increase of 20% was exceeded last year.
A spokesperson for Kerry Group said: “Milk suppliers have been informed that the aggregate guaranteed volume allowed for under ‘Clause 3’ of the Milk Supply Contract was surpassed in 2020.
“The business is currently reviewing its approach to future milk volume management and will communicate plans to milk suppliers in due course,” the spokesperson added.