Kerry Group has become the first milk processor to set its price for May 2022 supplies.
It has increased its base milk price by 2c/L on last month’s 49.5c/L (including VAT).
In a statement to That’s Farming on Thursday, June 9th, 2022, a spokesperson for the milk processor, said:
“Our Kerry Group base price for May milk supplies will increase to 51.5c/l incl VAT at 3.30% Prot/3.60% Bfat and 56.39c/l incl Vat at EU standard constituents 3.40% Prot/4.20% Bfat”.
“Based on Kerry’s average milk solids for May, the milk price return inclusive of VAT and bonuses is 54.69c/L,” the spokesperson concluded.
The Kerry Group base price for April milk supplies increased to 49.5 c/l incl VAT at 3.30% Prot/3.60% Bfat and 54.21c/l incl Vat at EU Standard Constituents 3.40% Prot/4.20% Bfat.
Based on Kerry’s average milk solids for April, the milk price return inclusive of VAT and bonuses was 53.31 c/l.
‘Meaningful’ milk price increase
The announcement comes following the IFA’s call in recent days for a “meaningful price increase for May milk if they do not wish to see supply fall further in the second half of the year”.
Statistics released by the CSO show that milk supply for the first four months of 2022 was lower than in 2021 despite an increase in milk price.
Its dairy chairman, Stephen Arthur, says this reflects the “massively” higher cost of production on dairy farms.
“All milk indices – the European EEX; the New Zealand SGX and GDT; as well as the Ornua PPI – are trending higher and indicating price increases into the medium term, mainly due to sluggish supply worldwide.”
“Now is the time for Irish processors to give confidence to dairy farmers at a time of ever-increasing costs by setting a milk price for May that reflects the market.”
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