A producer organisation for Kerry Group milk suppliers is expected to begin accepting members next month, the Kerry Milk Suppliers’ Action Group has said.
Limerick-based barrister, Ciaran Dolan has drawn up an initial set of rules for the new producer organisation.
Dolan, a producer organisation facilitator approved by the Department of Agriculture, Food and the Marine (DAFM), has already been involved with the establishment of two beef producer organisations.
Agriland understands that an application to establish the Kerry Group milk suppliers’ producer organisation will be lodged with the department before Christmas.
Producer organisation
The group of suppliers, who have held meetings and participated in protests this year, say they are disappointed at the milk price being paid by Kerry, particularly in the first half of 2023.
They claim that the price paid by Kerry Group for milk over the first six months of the year was down by around 3.5c/L compared to other processors.
Last week, Kerry Group confirmed that it will pay 35c/L, inclusive of VAT, at 3.3% protein and 3.6% butterfat for November milk supplies. The price has remained unchanged since August.
The price consists of a base price of 32c/L and a milk contract payment of 3c/L, inclusive of VAT, on all qualifying milk volumes.
A spokesperson for the processor said: “Sentiment with regard to dairy commodities remains tentatively positive for 2024 as a turbulent 2023 comes to a close.
“The questions around the robustness of the market fundamentals underpinning that positivity still remain and underscore the evident uncertainty.”
As their current contracts with Kerry Group are due to expire at the end of 2025, some milk suppliers are keen to establish a milk producer organisation.
This organisation would aim to negotiate with milk purchasers, including Kerry Group, on behalf of suppliers.
The Kerry Milk Suppliers’ Action Group is proposing to hold its next meeting on January 18 at the Longcourt Hotel, Newcastle West, Co. Limerick.
It is understood that the producer organisation will open for membership at that meeting, if not before.
Survey
Meanwhile, the Kerry Milk Suppliers’ Action Group is also encouraging suppliers to complete a survey which was recently sent out to suppliers by Kerry Co-op.
The co-op has engaged independent agri consultants IFAC (Irish Farm Accounts Cooperative) to undertake the survey on future milk production on its behalf.
All 2,900 milk supplying members of Kerry Co-op received a survey in the post which must be returned by tomorrow (Wednesday, December 20).