The board of Kerry Group has today (Tuesday, May 14) become the latest processor to announce its milk price for April supplies.
The processor’s price for April milk supplies remains unchanged from the previous month ar 41.0c/L.
This includes VAT, at 3.30% protein and 3.60% butterfat, consisting of a base price of 39c/L and a milk contract payment of 2c/L on all qualifying milk volumes.
Kerry Group’s April milk price at EU standard constituents of 3.4% protein and 4.2% butterfat is 44.96c/L.
Based on Kerry’s average milk solids for April, the price return inclusive of VAT and bonuses is 43.71c/L.
A Kerry Group spokesperson said: “The rebound in global dairy prices observed in late 2023 and during the first quarter of this year has decelerated in recent weeks due to weakened demand.
“Despite this, supply-side challenges will persist in the short to medium-term, which is supporting dairy commodity prices in the absence of a substantial increase in demand.”
Kerry Group
Kerry Group reported a group revenue for 2023 this month of €8 billion, a decrease of €800 million on 2022, according to its results for last year.
The group’s earnings before interest, tax, depreciation, and amortization (EBITDA) were €1.2 billion, largely unchanged from 2022, while EBITDA margin (EBITDA/total revenue) was 14.5%, a slight increase on 2022 (13.9%).
The group volume growth decreased slightly, by 0.9%, in 2023, following a 6.1% increase in 2022.
The company’s net cash from operating activities increased to over €1 billion last year, from €722 million in 2022.
Lakeland Dairies
Meanwhile, the board of Lakeland Dairies has also confirmed that the base price for milk supplied in April has been held from last month.
A base price of 41.9c/L – based on 3.6% butterfat and 3.3% protein – will be paid for April milk in the Republic of Ireland (ROI).
The base price includes the 0.5c/L Sustainability Incentive Payment and also a 1c/L Input Support Payment introduced last month, which continues to be paid on top of the base price.
This means that the all-in base price for ROI suppliers is 42.9c/L for milk supplied in April.