Kerry Group has announced this evening (Tuesday, April 2) that will pay an additional 0.90c/L (inclusive of VAT) in respect of “all qualifying milk solids supplied under the Kerry milk supply contract in 2023”.

The decision follows a consultation between Kerry Group and the board of Kerry Co-Operative Creameries Ltd. in relation to the ‘leading milk price payment’.

The Group has said that the total further payment to its milk suppliers amounts to €10.5 million.

Kerry milk price

Last month, the processor confirmed an increase in its milk price for February to 40c/L, up from 39.5c/L.

This included VAT for milk supplied in February at 3.3% protein and 3.6% butterfat, consisting of a base price of 38c/L and a milk contract payment of 2c/L on all qualifying milk volumes.

The February milk price at EU standard constituents (3.4% protein and 4.2% butterfat) is 43.88c/L.

Based on Kerry’s average milk solids for February, the price return inclusive of VAT and bonuses is 45.35c/L.

In January, the processor announced that it would issue a milk price top-up payment to suppliers for milk supplied in the final six months of 2023.

The processor paid 1c/L, including VAT, for all qualifying milk solids supplied in the period from July to December 2023.

In a statement following that payment, the board of Kerry Co-op acknowledged the interim top-up payment by the group.

The board said that it “recognises this payment as representing part-payment of Kerry Group’s contractual commitment to pay ‘the leading milk price’ to its milk suppliers for 2023”.

Kerry Co-op added that it will work constructively with the processor through its leading milk price committee to ensure that the outstanding balance is paid in due course.

Today’s announcement of a 0.9c/L top-up follows consultation between the processor and co-op.