It has been confirmed that in excess of 600 milk suppliers have locked into Kerry’s inaugural Forward Price Scheme, which opened for applications earlier this week.
A spokesperson for Kerry Group confirmed to AgriLand that a total of 634 milk suppliers committed to the scheme.
The initiative received a “soft launch”, as members had to be registered online to participate. Those interested in applying were given a 23-hour window to submit their applications.
The initial introduction of the scheme was described as a “phenomenal success” by the spokesperson, adding that the response from suppliers was “well above expectations” for the first offer.
The scheme was “welcomed widely” by suppliers once it was formally confirmed that a contract price of 33c/L – including VAT – was on offer for supplies (with solids of 3.3% protein and 3.6% butterfat) entered into the scheme.
It is believed that many of those who applied opted to go for the highest proportion available.
AgriLand understands that Kerry intends to make a number of offers to suppliers to enter the scheme in any given year.
The spokesperson stated that this week’s “inaugural introduction” of the scheme was “very successful”, adding that Kerry hopes to see the initiative progressively grow in the future.