Kerry to tighten up on milk storage quality from suppliers

Kerry Group has put measures in place to tighten up on quality from milk suppliers regarding bulk tank storage facilities.

Letters have been sent out to notify suppliers that they must have sufficient milk storage in their primary bulk tanks; milk stored in second storage facilities deemed unsuitable will be penalised from 2019 on.

This is to ensure compliance with the Kerry Agribusiness milk grading scheme and conditions of purchase, a Kerry spokesperson confirmed.

This has been in place for a number of years but will be imposed on a strict basis from January 1, 2019.

This is only expected to affect a small minority of Kerry Group suppliers.

The letter to suppliers outlined grant aid available under the Targeted Agricultural Modernisation Scheme (TAMS) II programme, as well as loan facilities on offer through the group’s own Dairy Flex loan programme.

In addition, should suppliers have suitable infrastructure in place by March 2020, they will be refunded their penalties by the processor.

TAMS II funding

Under TAMS II, farmers seeking to upgrade their milk storage facilities can avail of the Dairy Equipment Scheme (DES).

Farmers considering entering TAMS II need to make an investment of at least €2,000 to be eligible for grant aid under this scheme.

According to the Department of Agriculture, Food and the Marine grant aid will only be paid on approved, completed and eligible expenditure.

Under TAMS II, individual farmers can apply for grant aid of 40% on investments up to a ceiling of €80,000; this is a maximum individual payment of €32,000.

Farmers which reach this grant aid ceiling are not eligible to apply for any other of the TAMS II schemes with the exception of the Low Emission Slurry Spreading (LESS).

For those farmers in a registered farm partnership with the department, they can avail of grant aid to the value of €160,000. This applies to applications with two or more eligible partners.

Partnerships containing one qualifying young farmer grant aid will be paid at 60% on the first €80,000 and 40% for the remaining balance.

Tranche 12 of the TAMS programme will close next Friday (December 7).