Kerry has become the latest in a growing list of processors to announce a milk price increase for August supplies.
The processor announced that its milk price is set to rise by 1.5c/L for the month of August. This increase means that its suppliers will receive a base price to 36c/L including VAT.
This represents Kerry’s second consecutive monthly increase of 1.5c/L, this follows on from 1c/L increases announced for both May and June milk.
Prior to that Kerry hadn’t altered its milk price since the first month of the year, when it increased its the price by 2c/L. Meanwhile, Kerry’s suppliers are reminded that they only have until the end of the month to apply to enrol in its fixed milk price scheme.
Other processors
Kerry’s decision to up its August milk price comes in the wake of similar decisions from Glanbia Ireland and Lakeland Dairies.
Earlier this week, both processors increased their milk prices for August supplies by 1c/L. Lakeland Dairies also announced a lactose bonus of 0.28c/L, which brings its milk price to 35.28c/L including VAT.
The increase announced by Glanbia means it will be paying its suppliers a base price of 35c/L, VAT inclusive. However, the processor also announced that it will pay its milk suppliers a 1c/L bonus on all milk supplied in January to June of 2017.
Commenting on the increase, Glanbia Ireland Chairman, Henry Corbally, said: “While the short-term outlook remains positive, we note that the current high prices are leading to higher production in key regions and may affect demand when fully passed through the supply chain.
Exchange rates, particularly the weakening dollar, may also have an impact on returns in the medium term. The board will continue to monitor market developments on a monthly basis.
The decision to issue a 1c/L bonus on all milk supplied in January to June of 2017 is set to be included in this month’s milk payment.
Milk volumes allocated to Glanbia’s Fixed Milk Price Schemes will also benefit from the flat 1c/L bonus payment.
Other processors are expected to announce their milk prices for the eighth month of the year in the coming days.