Kerry Group increases milk price

AS the international markets for dairy products continues to firm, Kerry Group announced another increase in the price that it pays farmer suppliers for their milk.

It confirmed that its supplier milk price payment will increase by a further two cents/litre to 34 cents /litre (154.5 cents/ gallon) for deliveries from July 1. This brings the cumulative Kerry milk price increase in 2007 to 8.5 cents/litre (38 cents/ gallon).

Meanwhile, IFA Dairy Committee chairman Richard Kennedy warned farmers not to accept underpayment by their co-ops.

He said there is ample evidence that continuously increasing dairy product prices more than justify IFA’s 35c/l + VAT minimum target for July milk, and even this would still leave co-ops with higher margins.

“Farmers must demand from all co-op board members and manage-ment teams that they pass back the full benefits of the ongoing rises in dairy markets in July,” he said.

Mr Kennedy said the money can either go into farmers’ pockets, to meet financial commitments, to invest on the farm, or to contribute towards a pension plan, or it can go to line the coffers of co-ops, militating against greater processing efficiencies.

Mr Kennedy urged farmers to demand that their co-op boards, who will be meeting in the next couple of weeks pay them the full benefit from the current buoyant markets.