Kerry Group sets the lead for other processors with 2c/l rise in milk price

KERRY GROUP has set a lead for other processors by increasing the price it pays its suppliers for milk supplied during the month of March.

The group’s confirmation that its March milk price is 27c/l VAT inclusive, an increase of 2c/l from February, was welcomed by farm leaders.

Irish Farmers Association Dairy Committee chairman Kevin Kiersey said Kerry was now showing the way, reaching closer to the minimum necessary for farmers to cover their costs and pay themselves a very modest wage.

“Other co-ops must follow their example, and reflect the fact that markets are now clearly firming by passing back further milk price increases before peak,” he said

Mr Kiersey said this is the latest confirmation that a combination of low supplies and strengthening demand has been driving a real improvement in market returns in recent weeks after the very uncertain months of January and February.

“Co-ops have real scope to increase milk prices further, and farmers, who are still suffering the drastic consequences of the financial losses they accumulated last year, need every extra cent co-ops can pass back,” he said.

Irish Creamery Milk Suppliers Association Dairy Committee chairman Pat McCormack welcomed the Kerry decision and said dairy markets were beginning to regain the strength lost over the last two years.

Mr McCormack said it was no exaggeration to say that dairy farmers had never needed a milk price rise more and the Kerry decision must be considered as a vital move towards restored viability.

It was now incumbent on all other co-ops to signal to their suppliers their intention to at least match Kerry’s price rise.

However, he cautioned that the recovery was still tentative and would be undermined by any reckless release of intervention stocks on to the market by the European Commission.