Kerry Group has increased its fixed milk price offering to 32.95c/l (34.8c/l incl VAT) at 3.3% protein and 3.6% fat.
The price is up 2c/l on the last scheme price, which was 29.35c/l (31c/l incl VAT) at 3.3% protein and 3.6% fat.
The new fixed milk price will stand for milk supplied from March to October 2021.
Maximum volume that can be applied for is 20% of a supplier’s annual contracted milk volume.
Unlike other processors, Kerry opens a window of 24 hours for online application by milk suppliers.
The latest round of the Kerry Group forward fixed milk price is live at the moment.
Farmers can submit a volume to fix for 24 hours, starting at 2pm Tuesday 9 March.
The other significant difference in Kerry is that, historically, top-ups have not been paid on fixed milk price contracted milk.
Fixed price scheme
Given the ongoing deal that Kerry Group and Kerry milk suppliers are negotiating which might deliver an additional milk price top-up, some Kerry farmers are very slow to fix into a fixed milk price scheme.
We understand, in addition, Kerry will be opening a forward price scheme 20 (Mar-Jun 2022) for online application on Thursday 11 March 2021 at 2pm and will close at 2pm on Friday – indicative price will be communicated to milk suppliers on Wednesday and offer price confirmed on Thursday morning.
Set the standard
Chairperson of ICMSA’s dairy committee Ger Quain has described the latest forward price scheme offering by Kerry Co-op as a vote of confidence in dairy prospects through peak production and into the third quarter.
“This forward price scheme is one of the highest offerings in terms of fixed contracts to dairy farmers in Ireland and sets the standard for where fixed contracts will need to go in the future,” Quain said.
“Irish dairy farms don’t need to see milk price hitting a plateau that results in the real value or purchasing power of their income diminishing against surging input costs.
“What’s required is a milk price that increases steadily in line with the wider economy and always ahead of inputs. This offering by Kerry is the benchmark for other Co-ops and processors.”