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There has been a clamour of calls this week for co-op boards to lift milk price when they meet next.
They come on the back of an exceptional rise in the most recent GDT auction price, a lift in Fonterra forecasted farmgate price and continued improving market indicators from other European sources.
Earlier this week Kerry Group increased its fixed milk price offering for March to October 2021 supply to 32.95c/l (34.8 c/l incl VAT) at 3.3% protein and 3.6% fat.
The price is up 3.8 c/l on the last scheme price.
Unlike other processors, Kerry opens a window of 24 hours for online application to these schemes by milk suppliers. That round of the Kerry Group forward fixed milk price closed yesterday (Wednesday) at 2pm.
From today (Thursday), Kerry will be opening a forward price scheme for milk supply between March and June 2022.
Historically Kerry Group price top-ups have not paid out on fixed milk price contracted milk.
IFA dairy chair Stephen Arthur said co-ops must move to increase prices: “All market indications are positive. We will not tolerate any attempts by processors to dampen the strong trends underpinning milk price.
“European and world dairy market prices continue to strengthen as processors meet to decide milk price for February.
“Global markets are now buoyant. If processors don’t move immediately, it will be a kick in the teeth for farmers.”
ICMSA’s Gerald Quain described the latest forward price scheme offering by Kerry Co-op as extremely encouraging and said it was a “vote of confidence” in dairy prospects through peak production and into quarter three.
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