The board of Kerry Group has today (Tuesday, May 14) become the latest processor to announce its milk price for April supplies.
This includes VAT, at 3.30% protein and 3.60% butterfat, consisting of a base price of 39c/L and a milk contract payment of 2c/L on all qualifying milk volumes.
Kerry Group’s April milk price at EU standard constituents of 3.4% protein and 4.2% butterfat is 44.96c/L.
Based on Kerry’s average milk solids for April, the price return inclusive of VAT and bonuses is 43.71c/L.
A Kerry Group spokesperson said: “The rebound in global dairy prices observed in late 2023 and during the first quarter of this year has decelerated in recent weeks due to weakened demand.
“Despite this, supply-side challenges will persist in the short to medium-term, which is supporting dairy commodity prices in the absence of a substantial increase in demand.”
Kerry Group
Kerry Group reported a group revenue for 2023 this month of €8 billion, a decrease of €800 million on 2022, according to its results for last year.
The group’s earnings before interest, tax, depreciation, and amortization (EBITDA) were €1.2 billion, largely unchanged from 2022, while EBITDA margin (EBITDA/total revenue) was 14.5%, a slight increase on 2022 (13.9%).
The group volume growth decreased slightly, by 0.9%, in 2023, following a 6.1% increase in 2022.
The company’s net cash from operating activities increased to over €1 billion last year, from €722 million in 2022.
Lakeland Dairies
Meanwhile, the board of Lakeland Dairies has also confirmed that the base price for milk supplied in April has been held from last month.
A base price of 41.9c/L – based on 3.6% butterfat and 3.3% protein – will be paid for April milk in the Republic of Ireland (ROI).
The base price includes the 0.5c/L Sustainability Incentive Payment and also a 1c/L Input Support Payment introduced last month, which continues to be paid on top of the base price.
This means that the all-in base price for ROI suppliers is 42.9c/L for milk supplied in April.
