Kerry milk price proposal criticised

IFA National Dairy Committee Chairman Richard Kennedy has said the announcement by Kerry that they would cut milk prices by a further 1.32c/l (6c/gal) from January 1, 2007 was a major kick in the teeth for Kerry suppliers at a time of unprecedented pressure on farm incomes.

Mr Kennedy said: “Kerry are pre-judging markets far too early, at a time when SMP, whey and other protein prices, all of which are critical to the Kerry product mix, are increasing very strongly.

“It is clear to me that Kerry are trying to pacify the stock market, and are quite happy to sacrifice their milk suppliers in the process.”