Kerry Group, has today (Tuesday, March 14th, 2023), become the second milk processor to announce its February 2023 milk price.
Its announcement comes following Lakeland Dairies’ yesterday, which saw a 6c/L inclusive of VAT cut to the previous month’s price.
In a statement to That’s Farming, a spokesperson for the processor told the publication:
“Our Kerry Group base price for February milk supplies is 44 cent per litre (Vat Inc) at 3.30% Prot/3.60% Bfat and 48.23cent per litre (Vat Inc) at EU Standard Constituents 3.40% Prot/4.20% Bfat.”
“Based on Kerry’s average milk solids for February, the milk price return inclusive of VAT and bonuses is 50.66 cent per litre,” the spokesperson added.
Last month, we reported that Kerry Group confirmed that it was also reducing its base milk price.
In a statement, Kerry Group confirmed that its base price for January milk supplies was 50 cent per litre (Vat Inc) at 3.30% Prot/3.60% Bfat and 54.76 cent per litre (Vat Inc) at EU Standard Constituents 3.40% Prot/4.20% Bfat.
Based on Kerry’s average milk solids for January, the milk price return inclusive of VAT and bonuses was 58.84 cent per litre, it reported.
As highlighted above, the board of Lakeland Dairies has, confirmed in a statement to That’s Farming, its decision to reduce the co-operative’s milk price for February on the back of what it has described as “weaker” dairy market conditions which continue to have a “serious” impact on market returns.
In the Republic of Ireland, the processor has reduced the milk price by 6 cent/litre to 46.85 cent/litre inclusive of VAT for milk at 3.6% fat and 3.3% protein.
The February price includes an Input Support Payment of 1.5 cent/litre, inclusive of VAT, for all suppliers.
Meanwhile, in Northern Ireland, Lakeland Dairies has reduced the milk price by 4p/litre to 38.5 p/litre. The February price includes a supplementary Input Support Payment of 1.5 p/litre.
The spokesperson outlined:
“While markets firmed somewhat over the past month, this has come from a low-level base of current prices.”
“Generally weaker conditions have continued due to higher global milk supplies and fluctuating demand from dairy buyers.”
“This is against a backdrop of economic uncertainty with ongoing inflationary pressures impacting consumer, trade and manufacturing requirements for dairy products and ingredients.”
“Overall, outcomes remain unpredictable, and there is continuing variability which will remain a feature of global markets for the immediate period ahead.”