Kerry Group Prepares New Milk Suppliers Contract
Source: The DairyNews
Kerry Group is in the process of developing a new contract for its milk suppliers, aiming to address concerns and ensure continued collaboration beyond the current contract period expiring in April 2026, agriland.ie writes.
Pat Murphy, the CEO of Dairy Ireland within Kerry Group, confirmed this initiative, assuring suppliers of the company's commitment to collecting milk across its catchment area.
Despite a challenging year in 2023, marked by a decrease in revenue to €1.2 billion and a 6.5% decline in volumes due to market price reductions, Kerry Group remains focused on supporting its suppliers. Murphy highlighted the impact of adverse weather conditions on farmers and the efforts made by Kerry Agribusiness to source fodder and feed to alleviate shortages.
While milk supplies have seen a dip of approximately 10% this year, partly attributed to weather conditions and regulatory uncertainties, Kerry Group is optimistic about stabilizing the supply chain. With investments aimed at adding value to its milk pool, such as the €30 million Cheestrings facility expansion in Charleville, Co. Cork, the company aims to enhance returns for farmers.
Regarding milk prices, Murphy noted that although they currently exceed market returns, stability is expected in the coming months. Global milk supply dynamics, including reduced cow numbers in the US and stable production in western Europe, are anticipated to influence future pricing trends.
In response to concerns over milk prices, the Munster Dairy Producer Organisation (MDPO) recently gained recognition from the Department of Agriculture, Food, and the Marine (DAFM). Led by Kerry Group milk suppliers dissatisfied with the current pricing structure, the organisation aims to address industry challenges and advocate for fairer returns.
Despite a challenging year in 2023, marked by a decrease in revenue to €1.2 billion and a 6.5% decline in volumes due to market price reductions, Kerry Group remains focused on supporting its suppliers. Murphy highlighted the impact of adverse weather conditions on farmers and the efforts made by Kerry Agribusiness to source fodder and feed to alleviate shortages.
While milk supplies have seen a dip of approximately 10% this year, partly attributed to weather conditions and regulatory uncertainties, Kerry Group is optimistic about stabilizing the supply chain. With investments aimed at adding value to its milk pool, such as the €30 million Cheestrings facility expansion in Charleville, Co. Cork, the company aims to enhance returns for farmers.
Regarding milk prices, Murphy noted that although they currently exceed market returns, stability is expected in the coming months. Global milk supply dynamics, including reduced cow numbers in the US and stable production in western Europe, are anticipated to influence future pricing trends.
In response to concerns over milk prices, the Munster Dairy Producer Organisation (MDPO) recently gained recognition from the Department of Agriculture, Food, and the Marine (DAFM). Led by Kerry Group milk suppliers dissatisfied with the current pricing structure, the organisation aims to address industry challenges and advocate for fairer returns.
