Kerry’s decision to set 30 cent per litre milk price hailed as benchmark

A DECISION by Kerry Group to set a milk price of 30 cent per litre for last month’s milk was hailed by the Irish Creamery Milk Suppliers Association yesterday as a benchmark for all dairy co-ops and processors.

Pat McCormack, ICMSA Dairy Committee chairman, said dairy markets were again stronger in May and these improvements were reflected by the Kerry decision.

He said this price must now serve as the benchmark for all co-ops and processors as their boards meet over the next week or so to set the May price.

Mr McCormack said there was already a suspicious lag opening up between the prices being paid on international markets and those paid to Irish milk suppliers.

ICMSA would not countenance a situation where milk suppliers were left struggling with the debts accumulated in 2009 and the early part of 2010.

This would particularly be the case where their co-ops and processors replenished their own reserves by not passing back the improved prices or delaying the payment of better prices.

Mr McCormack said the facts supported an immediate price rise.

“In 2009, when markets were falling, the Irish Dairy Board and co-ops were very quick to pass back the downturn in price to dairy farmers.

“The opposite is now happening and co-ops boards must immediately pass the full benefits of the upturn in price back to their suppliers,” he said.