After holding the milk price since November of last year, Kerry Group has cut its milk price for April supplies of milk by 1.5c/L, bringing the price for April to 23.5c/L (including VAT), a spokesperson for Kerry has told Agriland.

The spokesperson said that in relation to Kerry’s milk price commitment, Kerry has honoured its commitment to pay the leading milk price on a like-for-like basis in 2015, as per its contract with milk suppliers.

“However, recognising the difficulties at farm level due to low dairy market returns Kerry Group has decided to pay an additional 0.6c/L on all litres supplied in 2015 (excluding forward contract litres) and this is included in the April milk payment,” the spokesperson said.

Responding to the cut in Kerry’s April milk price ICMSA Dairy Committee Chairman Gerald Quain said that ICMSA is disappointed by the 1.5c/L cut.

“We think that set against the kind of unprecedented pressure milk suppliers are currently under, that we were entitled to ask for milk price to be held.

“As regards the 0.6c/L payment on 2015 supplies, we do not believe that this thirteenth payment will meet the ‘leading milk price’ commitment given which suppliers expect to be met in full,” Quain said.

Four other processors cut April milk price

Earlier this week, both Arrabawn co-op and Aurivo have cut their milk prices for April supplies of milk by 1c/L, IFA National Dairy Chairman Sean O’Leary told Agriland.

Dairygold set its April milk price at 22c/L at 3.60% Fat and 3.3% Protein including VAT, a cut of 1c/L. There is an additional 0.5c/L payable for the Balanced Scorecard Quality bonus and SDAS approved suppliers.

Meanwhile, a spokesperson for Carbery said that it would be cutting the milk price by 1c/L.

Lakeland Dairies held its milk price for April supplies of milk at 24.78c/L including vat and a lactose bonus, a spokesperson for Lakeland has confirmed to Agriland.

It follows Glanbia in holding the milk price for April after Glanbia last week announced that it is to pay its member suppliers 24c/L including VAT for April manufacturing milk supplies.

A spokesperson for the co-op said that this price is inclusive of a 2c/L Glanbia Co Operative Society support payment to its members.

Glanbia Ingredients Ireland (GII) also held the April price at 22c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

The Board of Glanbia Co-operative Society has decided to pay members a support payment of 2.0c/L (including VAT) for April manufacturing and liquid milk supplies.

IFA National Dairy Chairman, Sean O’Leary, welcomed Glanbia and Lakeland supporting their suppliers by holding their April milk price, and Lakeland offering a fixed milk price contract for the first time.

“Conversely, I was disappointed that Arrabawn and Aurivo cut their April milk price.

“I understand that markets are challenging, with only limited signs of improvements, and those unlikely to take hold for some time, but farmers simply cannot take any further pain, and every cut sinks them further into the red, damaging their families’ livelihoods but also the potential of the entire dairy sector.”