Kerry Group Maintains April Milk Price Amidst Market Fluctuations
Source: The DairyNews
On Tuesday, May 14, the board of Kerry Group announced that its milk price for April supplies will remain unchanged at 41.0 cents per liter (c/L).
This price includes VAT and is based on milk constituents of 3.30% protein and 3.60% butterfat, comprising a base price of 39 c/L and a milk contract payment of 2 c/L for all qualifying milk volumes.
At EU standard constituents of 3.4% protein and 4.2% butterfat, Kerry Group's April milk price stands at 44.96 c/L. Based on the average milk solids for April, the price return, inclusive of VAT and bonuses, is 43.71 c/L.
A spokesperson for Kerry Group noted, "The rebound in global dairy prices observed in late 2023 and the first quarter of this year has slowed in recent weeks due to weakened demand. Despite this, supply-side challenges will persist in the short to medium-term, supporting dairy commodity prices in the absence of a substantial increase in demand."
In other company news, Kerry Group reported a group revenue of €8 billion for 2023, a decrease of €800 million from 2022. Earnings before interest, tax, depreciation, and amortization (EBITDA) remained stable at €1.2 billion, with a slight increase in the EBITDA margin to 14.5% from 13.9% in 2022. The group’s volume growth decreased by 0.9% in 2023, following a 6.1% increase in 2022. However, net cash from operating activities increased significantly to over €1 billion from €722 million in the previous year.
Meanwhile, Lakeland Dairies also confirmed that its base price for milk supplied in April will remain unchanged from last month at 41.9 c/L, based on 3.6% butterfat and 3.3% protein. This price includes a 0.5 c/L Sustainability Incentive Payment and a 1 c/L Input Support Payment, bringing the all-in base price for Republic of Ireland suppliers to 42.9 c/L for April milk supplies.
At EU standard constituents of 3.4% protein and 4.2% butterfat, Kerry Group's April milk price stands at 44.96 c/L. Based on the average milk solids for April, the price return, inclusive of VAT and bonuses, is 43.71 c/L.
A spokesperson for Kerry Group noted, "The rebound in global dairy prices observed in late 2023 and the first quarter of this year has slowed in recent weeks due to weakened demand. Despite this, supply-side challenges will persist in the short to medium-term, supporting dairy commodity prices in the absence of a substantial increase in demand."
In other company news, Kerry Group reported a group revenue of €8 billion for 2023, a decrease of €800 million from 2022. Earnings before interest, tax, depreciation, and amortization (EBITDA) remained stable at €1.2 billion, with a slight increase in the EBITDA margin to 14.5% from 13.9% in 2022. The group’s volume growth decreased by 0.9% in 2023, following a 6.1% increase in 2022. However, net cash from operating activities increased significantly to over €1 billion from €722 million in the previous year.
Meanwhile, Lakeland Dairies also confirmed that its base price for milk supplied in April will remain unchanged from last month at 41.9 c/L, based on 3.6% butterfat and 3.3% protein. This price includes a 0.5 c/L Sustainability Incentive Payment and a 1 c/L Input Support Payment, bringing the all-in base price for Republic of Ireland suppliers to 42.9 c/L for April milk supplies.
