Kerry Group made an announcement on Tuesday, April 2, revealing its decision to provide an extra payment of 0.90c/L (inclusive of VAT) for all qualifying milk solids supplied under the Kerry milk supply contract in 2023, Agriland writes.
The total additional payment to milk suppliers by the Group amounts to €10.5 million.
The processor had previously raised its milk price for February to 40c/L, up from 39.5c/L, including VAT for milk supplied at specific protein and butterfat levels. This comprised a base price of 38c/L and a milk contract payment of 2c/L on all qualifying milk volumes.
The February milk price at EU standard constituents stood at 43.88c/L. Considering Kerry’s average milk solids for February, the price return inclusive of VAT and bonuses was 45.35c/L.
In January, the processor had announced a milk price top-up payment for suppliers for milk supplied in the latter six months of 2023, amounting to 1c/L, including VAT, for all qualifying milk solids supplied from July to December 2023.
Following this payment, the board of Kerry Co-op had recognized it as part-payment of Kerry Group’s contractual commitment to pay ‘the leading milk price’ to its milk suppliers for 2023.
Kerry Co-op stated its intention to collaborate with the processor through its leading milk price committee to ensure the outstanding balance is paid in due course.
This announcement of a 0.9c/L top-up follows consultations between the processor and the co-op.
