KERRY GROUP DEFENDS MILK PRICE FREEZE

KERRY Group has defended its decision to hold its current milk prices despite a rise in their rivals’ prices but haven’t ruled out a possible rise into the future.

Director of Corporate Affairs Frank Hayes expressed hope that good market signals can be reflected over the coming months.

“I’m fully aware of the difficulties facing farmers. Markets have been weak for over 18 months now and Kerry has been subsidising milk price all this year and for a good period last year.

“There’s positive signals at the moment, and we will manage our customer positions accordingly going forward. Hopefully the good signs in the market will be reflected in improved market returns and improved supplier prices over the coming months,” Mr Hayes told The Kerryman.

The comments follow a strongly worded statement from Chairperson of the Kerry ICMSA Executive Kevin Galvin who claimed that farmers in the region are “extremely angry to receive a milk price that’s near the bottom of the league – particularly given the intense financial pressures on local farmers at present”.

It follows Kerry Group’s decision to hold its base price at 22.5 cents per litre (including VAT), while the majority of co-ops increased their milk price.

Mr Galvin acknowledged that milk prices have generally been poor across the country over these past two years but added that the position hasn’t been quite as bad over the county bounds.

“Kerry farmers are looking on enviously at farmers in West Cork and Boherbue who’ve been getting a price significantly higher than what’s been paid by Kerry. Kerry Co-op gave a commitment to pay the leading milk price, and suppliers have every right to expect that this will be delivered upon,” Mr Galvin continued.

“There’s been a bounce in the market and the introduction of the voluntary supply reduction scheme is clearly having a positive impact, and it is high time that Kerry suppliers get a milk price that reflects the improvements in the marketplace.”

Meanwhile, IFA President Joe Healy said that Kerry Group had chosen not to pass on the benefits of improved dairy markets, unlike other co-ops.

“They’ve got it wrong and must revisit this decision for the sake of their cash strapped suppliers. My phone has been hopping all day with outraged producers who feel let down by this decision,” Mr Healy said.

Dairygold has raised its base milk price by 1.5c/l (to 24c/l), while Aurivo (23c/l), Glanbia (23 c/l), Arrabawn (24.25c/l) and Lakeland (24 c/l) all increased their prices by 1c/l. Carbery held their prices.

All prices quoted include VAT.