Kerry holds its milk price for September

Kerry Group has become the latest milk processor to reveal its price for September supplies.

Announcing its price earlier today (Monday, October 15), the processor has decided to hold its figure at 32c/L including VAT.

This follows last week’s announcements, with both Glanbia and Lakeland Dairies showing their hand of cards so far this month.

On Friday (October 12), Glanbia announced that it would pay its member milk suppliers 32c/L including VAT for September manufacturing milk supplies at 3.6% butterfat and 3.3% protein.

This is unchanged from the August price paid to members.

Meanwhile, on Thursday, Lakeland Dairies announced that it has held its milk price but introduced a lactose bonus.

Lakeland suppliers will be paid 32.78c/L including VAT for September milk supplies.

A lactose bonus of 0.28c/L will also apply for September milk, bringing the effective milk price to 33.06c/L including VAT.

Slight dip for September PPI

Ornua’s Purchase Price Index (PPI) has dropped slightly in the most recent index, according to Ornua.

The dairy exporter’s price index for September is 110.4 – adjusted from 111.1 for August.

This translates to 33.3c/L, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

The September 2018 Index reflects weaker butter and spot dairy prices, offsetting improved returns for cheese and powders, according to a spokesperson for Ornua.

While a decrease on last month, the September PPI still comes in as the third highest recorded in 2018, behind only January and August in first and second place respectively.