Kerry Group has confirmed its base price for June milk supplies.
It has held its price of 37c per litre, Vat inclusive, at 3.3% protein and 3.6% butterfat.
At EU standard constituents of 3.4% protein and 4.2% butterfat, the price is 40.61c per litre.
Based on Kerry’s average milk solids for June, the milk price return inclusive of Vat and bonuses is 39.01c per litre.
A Kerry spokesperson said that prices for commodity dairy have fallen in the past month, with prices in the EU, US and GDT auction all moving in the same direction.
“The demand for dairy has declined further with end users well stocked, slow to call off existing orders and slow to contract new volumes,” the spokesperson commented.
“Milk supply is currently more than enough to cover falling demand adding to downward price pressure.”
This price confirmation follows Kerry Group suppliers holding two protests in recent weeks.
In June, up to 500 dairy farmers gathered outside Kerry’s buildings in Charleville, Co Cork, to protest at what they say is the “ridiculous” price being paid to farmers for milk.
Suppliers continued their “campaign” for an increased milk price at Kerry Group’s office in Tralee, Co Kerry, last week.
For May milk supplies, Kerry had reduced its base price by 1c to 37c per litre.
There has been a significant drop in prices seen this year from the historic highs of 2022.
A Kerry Group supplier received a base price of 56c per litre for December supplies.
However, the costs of inputs have not been so quick to drop.
Suppliers are calling for an increase in milk price, as the current price is “now 3c per litre behind” what is being paid by neighbouring processors.
Farmers want the 3c difference in milk price “to be reimbursed to us as soon as possible and we need Kerry to lead from the front rather than behind”.
