Kerry Group has today (Wednesday, January 24) announced a new forward price scheme offer to milk suppliers, which would set a price of 37c/L inclusive of VAT.
This would be at constituents of 3.6% butterfat and 3.3% protein.
The scheme, which includes a feed and fuel price adjustor, applies for the period from March-October 2024.
In a message to suppliers, the processor said that the latest forward price scheme would open for online applications at 3:00p.m today and remain open for 24 hours.
In October, Kerry Group offered its suppliers a forward price scheme at 38.5c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat.
That forward price scheme was for the period March to October 2024.
The price set for this latest forward price scheme is above the most recent base milk price offered by the processor for December supplies.
Last week, Kerry Group confirmed that it would pay suppliers pay 36c/L, including VAT, for milk supplied during December at 3.30% protein and 3.60% butterfat.
The December milk price at EU standard constituents of 3.4% protein and 4.2% butterfat is 39.5c/L, the processor said.
Based on Kerry Group’s average milk solids for December, the milk price return inclusive of VAT and bonuses is 45.5c/L.
“Despite the observed strength in commodity dairy markets towards the latter part of 2023, the markets continue to seek a definitive trajectory in 2024.
“The prevailing uncertainty primarily revolves around the demand outlook, with a particular emphasis on the dynamics within the Chinese market,” a spokesperson for the processor said.