An interim agreement has been reached between Kerry Group and Kerry Co-Operative Creameries Limited today, Monday, December 2, in relation to the ongoing dispute over milk price arrangements.
In a joint statement from Kerry Group and Kerry Co-Operative Creameries Limited – in relation to Kerry Milk Supply Contract payments – it outlines that it has been agreed Kerry Group will make “a goodwill payment” of 3c/L.
The goodwill payment will be paid in mid-January 2020 and will be calculated based on the average annual milk supplied for years 2015 through to 2019 and includes any additional payment arising from the Milk Supply Contract in 2019.
Both parties view this agreement, endorsed by the board of Kerry Co-Operative Creameries Limited, as an important first step which allows for discussion on a future long-term sustainable relationship.
Earlier in the month, Kerry Group revealed its milk price for October supplies, announcing an unchanged figure from last month.
In a statement on the matter on Thursday, November 14, a spokesperson for the group said that the Kerry Group base price for October milk supplies remained unchanged at 29.5c/L including VAT.
“Based on average October milk solids, the price return inclusive of VAT and bonuses is 37.5c/L,” the representative added.