Kerry Group has announced its milk price for suppliers in April, while both the group and Kerry Co-op have jointly announced the 2022 leading milk price payment.
In a joint statement, the group and the co-op said that, following consultation between the two, Kerry Group will pay 0.90c/L including VAT (at average Kerry milk solids) in respect of all qualifying milk solids supplied under the Kerry milk supply contract in 2022.
In addition, Kerry Group will also pay 0.90c/L including VAT (also at average Kerry milk solids) in respect of all milk solids supplied under fixed-price schemes in 2022.
The total further payment to Kerry Group milk suppliers amounts to €11.5 million, the joint statement said.
Separately, Kerry Group has also announced its price for April milk.
The base price for April milk supplies is 38c/L including VAT at 3.3% protein and 3.6% butterfat.
This is a reduction on the price of 40c/L offered last month for March milk.
This latest price equates to 41.7c/L including VAT at EU standard constituents 3.4% protein and 4.2% butterfat.
The group said that, based on Kerry’s average milk solids for April, the expected average milk price return inclusive of VAT and bonuses is 40.12c/L.
Commenting on the price, Kerry Group said: “Although milk supply in Europe is decreasing and is projected to decline further, there is an increase in milk production from exporting countries in other parts of the world.
“The demand outlook is varied, but currently not robust enough to drive an increase in dairy commodity prices,” the group added.
Its milk price comes after announcements from Lakeland Dairies and Dairygold in the last week.
Yesterday (Tuesday, May 16), Dairygold confirmed a drop in its offering to suppliers, reducing its April quoted milk price by 2c/L to 40c/L, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality bonuses, and VAT.
And last week, the board of Lakeland decided to reduce its price in the Republic of Ireland by 4c/L, bringing the figure to 38.85c/L including VAT, for milk at 3.6% fat and 3.3% protein.
Lakeland’s April price includes an input support payment of 1.5c/L, inclusive of VAT, for all suppliers.