Kerry holds November milk price – and unveils Forward Price Scheme 4

Kerry Group has held its milk price paid to suppliers for November. The Kerry Group base price for November milk supplies remains unchanged at 32c/L including VAT, a spokesperson for the company confirmed.

Based on average November milk solids, the price return inclusive of vat and bonuses is 41.7c/L, the spokesperson added.

In addition, the fourth Kerry Agribusiness Forward Price Scheme will be available to milk suppliers for online Application next Tuesday, December 18, at 2:00pm.

The indicative price to be on offer will be in the range of 29.5c/L to 30.5c/L including VAT for milk with solids of 3.3% protein and 3.6% butterfat. This will be paid from March to October 2019.

The offer price will be confirmed on Tuesday, December 18, and the maximum volume that can be applied for is 20% of a supplier’s annual contracted milk volume.

Going by previous forward price scheme formats, milk suppliers will have 24 hours to log on to the Kerry Agribusiness Online Services and apply for the volume of milk they wish to commit to the forward price scheme.

To avail of the forward price scheme, milk suppliers must be registered for Kerry Agribusiness Online Services.

Lakeland announces November price

Yesterday, Lakeland Dairies became the first processor to announce its November milk price.

Lakeland suppliers will be paid 32.06c/L including VAT and a lactose bonus for their November milk supplies.

This is a 1c/L reduction on its October milk price.

However, Lakeland Dairies will also pay an extra 3c/L Voluntary November Bonus to qualifying suppliers, based on peak to trough supply ratios.

Meanwhile, the co-operative will pay 26.5p/L to its Northern Irish suppliers, plus an out-of-season bonus of 3p/L for November milk supplies.

A statement issued by Lakeland Dairies noted that global cream and butter markets have become decidedly weaker in recent months and that butter prices have fallen by over €1,000 per tonne since September.

The statement explained that milk supplies have generally been strong and were up by 20% in October compared to the same time a year ago.

Year-to-date, milk supplies have generally been strong and were up by 20% in November compared to the same time a year ago.

Lakeland Dairies said it will continue at all times to pay the highest possible milk price in line with market conditions.