Kerry Group has confirmed today (Tuesday, December 13) that it will pay its suppliers an unchanged base price for November milk.
The processor’s base price will be 56c/L including VAT, at constituents of 3.3% protein and 3.6% butterfat.
The base price converts to 61.28c/L on the standard European constituents of 3.4% protein and 4.2% butterfat.
Based on Kerry’s average milk solids for November, the milk price return inclusive of VAT and bonuses is 71.84c/L.
In a statement, Kerry Group also announced that it will pay an additional 1c/L, including VAT and based on standard constituents, on November volumes as part of its contractual commitment.
In other dairy-related news, Teagasc has forecasted that overall milk prices will fall by 15% next year.
The Economic Outlook for Irish Agriculture report, published today, outlines that high production costs are likely to remain a challenge for Irish farmers throughout 2023.
According to Teagasc, the average milk price in 2023 should “still be sufficient to cover the production cost increases experienced over the last 18 months”.
It expects margins to remain high in 2023 and there will likely be “a return to growth in milk production of perhaps 4%”.
These factors are likely to impact on dairy farm incomes which are forecast to be lower in 2023, with the anticipated average dairy farm income to be in the region of €104,000.
Average farm incomes jumped considerably in 2022, propelled chiefly by the dairy sector which delivered average farm incomes for farmers of €148,000 in 2022, according to the Teagasc report.