Ger Quain, the association’s Dairy Committee chairperson, said the scheme is “extremely encouraging” and was a “vote of confidence” in dairy industry prospects through peak production and into quarter three (Q3).
The Kerry Agribusiness Forward Price Scheme 19 opened for online applications at 2:00pm yesterday (Tuesday, March 9) and will close at 2:00pm today.
Kerry confirmed the offer price as 34.8c/L (March to October 2021), including VAT, at 3.3% protein and 3.6% butterfat.
The maximum volume that can be applied for is 20% of a supplier’s annual contracted milk volume, suppliers have been told.
The ICMSA said that the scheme offering “shows that 34c/L is a very realistic target for the remaining milk pool outside the ringfenced forward price”.
Irish dairy farms don’t need to see milk price hitting a plateau that results in the real value or purchasing power of their income diminishing against surging input costs.
“What’s required is a milk price that increases steadily in line with the wider economy and always ahead of inputs. This offering by Kerry is the benchmark for other co-ops and processors,” the ICMSA dairy chairperson argued.
Kerry Group also confirmed that it will be opening Forward Price Scheme 20 (March to June 2022) for online applications tomorrow at 2:00pm. The application process closes at 2:00pm on Friday.
The indicative price for this will be communicated to milk suppliers this afternoon, with the price to be confirmed tomorrow morning.
