Arrabawn Announces Increase in May Milk Prices
Source: The DairyNews
Arrabawn has set a new milk price for May supplies, marking the latest update among dairy processors. The company announced on Monday, June 17, that it will raise its base price to 42.15 cents per liter (c/L) for milk with standard constituents of 3.3% protein and 3.6% butterfat. This adjustment includes an additional supplier input support payment of 1c/L and a sustainability bonus of 5c/L, bringing the total to 43.65c/L.
Conversely, Kerry Dairy Ireland, a division of the Kerry Group, has decided to maintain its May milk price at 41.0c/L, inclusive of VAT, for the same protein and butterfat levels. A spokesperson for Kerry Dairy Ireland cited the ongoing robustness in butter prices within the EU, which has led to limited supply and only essential transactions being conducted at these price points. The spokesperson also noted that any increase in availability could lead to downward pressure on prices.
This pricing strategy by Arrabawn and Kerry Dairy Ireland reflects the current dynamics in the dairy market, where supply constraints are influencing pricing decisions and testing the market's capacity to absorb cost increases.
This pricing strategy by Arrabawn and Kerry Dairy Ireland reflects the current dynamics in the dairy market, where supply constraints are influencing pricing decisions and testing the market's capacity to absorb cost increases.
