The board of Kerry Group has decided to cut April milk price by 1.5c/litre. This is Kerry’s first cut since November. Kerry has also decided to pay out a 2015 top-up of 0.6c/l. This takes Kerry’s price to 22.3c/l exclusive of VAT.

“However, recognising the difficulties at farm level, Kerry Group is paying a 0.6c/l top-up on all 2015 supplies due to the low dairy market returns. In effect, this is a €6.25m top-up payout on 2015 supplies to all Kerry milk suppliers. Those litres in the fixed milk price scheme are excluded,” said a spokesperson from the group.

Regarding the dispute between Kerry Group and milk suppliers, the Kerry spokesperson said: “No discussions have taken place lately and Kerry Group maintains they have honoured their commitment to pay the leading milk price, on a like-for-like basis, as per the contract with suppliers.”

The spokesperson also confirmed that 463 signed mandate forms had been gathered.

Last week it had been suggested that over 1,500 forms had been signed mandating a legal team to represent the board in mediation talks with Kerry Group over a “top-up” payment on 2015 supplies. Kerry Creameries (the milk suppliers) claim the 2015 milk price is 1.4c/l behind Carbery’s price.

IFA dairy chair Sean O’Leary has called on Minister for Agriculture Michael Creed to show greater urgency in implementing a state aid funded scheme to relieve dairy farmers’ cashflow pressures from superlevy and merchant credit.

ICMSA dairy chair Gerald Quain said the association is “disappointed” by Kerry’s cut, adding that farmers are “entitled” to see no price cuts.

April prices

Aurivo, Arrabawn, Carbery and Dairygold have all cut their milk price for April by 1c/l.

This brings the Aurivo price back to 21.8c/l, Arrabawn is now 22.4c/l, the Carbery group is on 23.8c/l while Dairygold has dropped its base price to 20.9c/l

Glanbia, Lakeland and LacPatrick all held their price for April.

The GDT auction in New Zealand saw a 2.6% increase in prices.