Saturday, February 24, 2024
8.9 C
HomeDairyFall in March milk price as a result of Covid-19
Reading Time: 3 minutes

Fall in March milk price as a result of Covid-19

Kerry Group have announced that their base milk price for the month of March is 30.5c/L including VAT.

Based on the average March milk solids, the price is 32.83c/L, including bonuses and VAT.

A spokesperson for Kerry Group made a statement after the announcement, saying: “We are conscious that issues related to the coronavirus outbreak in Ireland and across the globe are a great concern to milk suppliers, employees and all stakeholders.”

“Kerry Group will endeavour to maintain all processing operations and essential services to milk suppliers during this challenging situation,” the spokesperson said.

“Due to the impact of COVID-19, and further to the joint statement issued by Kerry Group and Kerry Co-operative Creameries in December, it has been agreed to extend the time-frame for discussions in relation to milk price arrangements and agreement towards a future long-term sustainable relationship, pending resumption of normal activities.”

Glanbia Ireland

Glanbia Ireland (GI) will pay its Member milk suppliers 29.42c/L for March milk at 3.6% butterfat and 3.3% protein, including VAT.

Their base milk price for March is 29c/L, including VAT, for creamery milk at 3.6% fat and 3.3% protein, which is a fall of 2c/L from February’s base price.

- Advertisement -

Farmer Members will also receive a 0.42c/L (including VAT) payment on all milk supplied this month as their ‘Share of GI Profit’.

Glanbia has cited the negative impact of COVID-19 on dairy markets as the biggest factor in the reduction of milk prices, especially restrictions brought in that have decimated the foodservice industry.

Glanbia Chairman, Martin Keane, commented: “The Coronavirus outbreak has caused significant challenges for all our communities and our businesses. We regret that a farm gate milk price reduction is required, but it is essential given the sharp drop in average returns from the market for our basket of products.”

“As a business, we are continuing to take all appropriate measures to deal with the challenge. We are deeply appreciative of the great commitment of our farmer suppliers, our team of hauliers and our dedicated workforce who are all ensuring that the national food chain is operational at this time,” he concluded.

Lakeland Dairies

Lakeland Dairies have also announced a drop in milk price, with Republic of Ireland suppliers receiving a base price of 30c/L.

This is a fall of 1.81c/L from February’s milk price.

In Northern Ireland, a base price of 23.75p/l will be paid for March milk. This is a reduction of 1.5p/l on the February price.

A spokesperson for the milk processor said: “As the CO­VID-19 pandemic has continued across the globe, the global dairy markets have collapsed.”

“Prices for butter, powders and cheeses are under significant down­ward pressure as food service milk is now flooding into powders and butter. Closer to home, sales of fresh milk and butter in retail outlets have increased somewhat but this increase has not offset the drop off in sales in the foodservice market.”

“The markets are difficult at present and Lakeland Dairies will continue to monitor developments closely in the coming days and weeks.”

- Advertisment -

Most Popular