Kerry milk price drops for February supplies

Kerry Group has become the latest milk processor to announce its price for February supplies, revealing a drop in milk price.

According to a spokesperson for the firm, the Kerry Group base price for February milk supplies is 31c/L including VAT.

Based on average February milk solids, the price return including VAT and bonuses is 35.56c/L.

In addition (excluding milk supplied under fixed price contracts) the group is paying 0.5c/L on milk supplied from May 1, 2018, to end of December 2018, which exceeds the milk contract price commitment, the company representative said.

The group already paid an additional 1.5c/L on milk supplied from January 1, 2018, to the end of March 2018 and an additional 1c/L on milk supplied in April 2018 excluding milk supplied under fixed price contracts, the spokesperson added.

Other processors

Earlier this week, both Glanbia and Lakeland announced their milk prices for February.

Glanbia will pay its member milk suppliers 31.5c/L including VAT, for February manufacturing milk supplies at 3.6% butterfat and 3.3% protein, down from last month’s figure of 32c/L.

Glanbia Ireland (GI) has maintained its base milk price for February at 30c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein, which it says is “in line with current market returns”.

GI will also make an interim market payment of 1c/L (including VAT) on all February milk supplies (excluding Fixed Milk Price Schemes paying above 31c/L).

Glanbia Co-op will make a support payment to members of 0.5c/L, including VAT.

Meanwhile, Lakeland has held its milk price for February.

The latest price will be held at 32.06c/L, inclusive of VAT and lactose bonus, for its February supplies, the same figure as the January price.

A spokesperson for Lakeland said: “The European market has weakened both for skim milk powder and butter in recent weeks.”

This is compounded by Brexit uncertainty which is having a negative effect on European prices while, separately, the New Zealand GDT auction has remained steady.

The spokesperson added that the co-op would continue to pay the highest possible price for as long as market conditions would allow.