Kerry Group milk suppliers are set to get a payment of 0.85c/L on all qualifying 2021 milk volumes after a deal was reached on the long-running leading milk price issue.
In a joint statement issued this afternoon (Wednesday, April 13), Kerry Group confirmed the payment “following consultation with the board of Kerry Co-Operative Creameries Limited”.
The processor outlined that this is “in satisfaction of our contractual commitment to pay the leading milk price on a like-for-like basis”.
Kerry suppliers were informed of the deal earlier today. It is understood the payment will be included with the March milk cheques.
In addition, Kerry Group announced that it will also pay 0.85c/L on all 2021 forward price scheme volumes.
The company explained that this is in “recognition of the challenging inflationary conditions at farm level”.
As previously reported by Agriland, the chair of Kerry Co-op told farmers that the 2021 milk price paid by Kerry Group to suppliers would need to be resolved before any talks on a potential joint venture take place.
In April 2021, talks between the co-op and Kerry Group on a potential dairy business deal were suspended after over 18 months of discussions.
Chair of Kerry Co-op, Denis Carroll stated that the relationship between Kerry Co-op and Kerry Group had evolved to a very poor place.
He explained that his focus was on rebuilding trust between the parties. He added that the litmus test to see if Kerry Group was buying into the new co-op approach was sorting out the 2021 milk price issue.
“If we can’t go in and resolve a relatively simple problem to come to an agreement on the 2021 milk price, how in the name of god do we think we could set up a joint venture together?” Carroll said.