Kerry Group has confirmed that it is offering its suppliers a forward price scheme at 33.5c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat.
This forward price scheme is for the period March to October 2024, and includes a feed and fuel price adjustor.
A statement from Kerry Group said that the feed and fuel price adjustor “helps limit participants’ exposure to inflation input prices during the period of the scheme”.
“This added feature provides farmers with protection against unforeseen increases in compound feed and energy prices and ensures greater stability in their financial planning,” the statement added.
The scheme opened for applications yesterday (Wednesday, August 9) at 2:00p.m, and will close today (Thursday, August 10) at 2:00p.m.
The price offered in the scheme is 3.5c below the most recent monthly milk price offered by Kerry Group, which was 37c/L for June supplies, announced in mid July.
The processor said at the time that prices for commodity dairy had “fallen again in the past month with prices in the EU, US and GDT [Global Dairy Trade] auction moving in the same direction”.
“The demand has declined further with end users well-stocked, slow to call off existing orders, and slow to contract new volume,” a Kerry Group spokesperson had added.
“Milk supply is currently more than enough to cover falling demand adding to downward price pressure,” the spokesperson had said.
That latest Kerry Group milk price came after two protests by its suppliers, demanding that the processor bring its milk price in line with other processors.
The first protest took place outside the processor’s dairy plant in Charleville, Co. Cork on June 20, in which some 500 suppliers took part.
The second protest took place at the Kerry Group offices in Tralee, Co. Kerry, on July 11.
These protestors say that they have been paid 3.7c/L less than suppliers of neighbouring processor Dairygold for all milk supplied in the first half of 2023.
Those demonstrations followed the milk price announcement (in June) from Kerry Group for May milk supplies, which saw a cut to base price of 1c/L to 37c/L, which was not improved on in the price for June.