Carbery Group has announced both its milk price for March supplies, as well as an additional support payment for its farmer suppliers who are impacted by poor weather conditions.
The group has increased its base milk price by 1c/L. If this decision is replicated across the four west Co. Cork co-ops of Bandon, Barryroe, Drinagh and Lisavaird, this will result in an average milk price of 42.19c/L, including VAT.
This price also includes a 0.5c/L somatic cell count (SCC) bonus, the group’s ‘FutureProof’ sustainability bonus (paid at a maximum of 1c/L for suppliers who fulfil the relevant criteria) and stability fund support of 1c/L.
The average milk price is an increase from the 41.67c/L average price for February milk.
As well as the milk price, Carbery Group has also announced that it will provide a 5c/L payment on all March milk volumes, in recognition of the difficulties farmers are experiencing due to the extended period of above-average rainfall.
The four co-ops have also been providing other relief measures, such as rebate programmes, extended credit, subsidised feed costs, and fodder support.
Commenting on this additional payment, Carbery Group chairperson Cormac O’Keefe said: “This has been a very difficult period for farmers and I, along with my fellow board members, strongly believe that we have a duty to support farmers where we can here.
“We hope that this initiative provides some measure of relief for our farmer shareholders,” O’Keefe added.
“We support the other calls by the dairy sector to extend flexibility and practical support to farmers as they manage this difficult situation.”
Carbery Group chief executive officer (CEO) Jason Hawkins said: “Our main purpose in Carbery as a co-op is to support our farmer shareholders as and when they need it.
“The diversified nature of our business allows us to do this when the circumstances call for it. It is clear that the ongoing weather, in particular rainfall, is causing widespread problems for our shareholders,” Hawkins added.
A similar weather-related payment measure has also been applied by Tirlán, which announced yesterday (Thursday, April 19) that it would pay a 3c/L ‘weather payment’ as part of its March milk price.
Tirlán said that the 3c/L weather payment will be made on all March milk volumes “in recognition of the exceptionally challenging weather”. This payment will also be made on March milk volumes in the Liquid Milk, Autumn Calving and Fixed Milk Price Schemes.
This, combined with a base price of 39.58c/L (an increase of 1c/L on the base price for February milk) gives an overall price offering from Tirlán for March of 43.08c/L, including VAT, for milk at 3.6% butterfat and 3.3% protein.