Kinisla has said it is in "direct contact" with milk suppliers who have not signed its new milk supply and purchase agreement.

The processor has said that the "vast majority" of its suppliers have signed the new contract, but did not confirm an exact number.

In April, Kinisla presented a new contract to its milk suppliers, replacing the previous contract, which expired on April 30.

Suppliers were given until August 4 to sign the new agreement.

Milk suppliers

It is understood that Kinisla sent a letter to suppliers this week who have not yet returned their signed agreement, reminding them to do so as soon as possible.

Kinisla reiterated that Kerry Creameries Limited (KCL), the wholly owned subsidiary of Kinisla that actually purchases milk from farmers, has no obligation to continue buying milk from suppliers who did not sign and return the contract by August 4.

This position was previously stated in the cover letter sent to suppliers with the new contract in April.

However, it is understood the letter said that KCL will continue to collect and purchase milk from these suppliers for "a further limited period" to facilitate the signing and return of the agreement.

When asked about the letter, the Kinisla spokesperson told Agriland: "We remain in direct communication with those suppliers who have not signed, and any matters relating to their position will be communicated directly to them".

Separately, the Munster Dairy Producers Organisation (MDPO) has written to Kinisla chief executive, Pat Murphy on behalf of 175 suppliers who say they have not signed the new contract.

In the letter, James Doyle, chair of MDPO, requested a meeting with the Kinisla CEO on the milk supply and purchasing agreement on behalf of the producer organisation.

Kinisla

In December 2024, shareholders in both Kerry Group and Kerry Co-op voted to approve a €500 million deal for the co-op to acquire Kerry Group's dairy business, Kerry Dairy Ireland, which was renamed Kinisla in May.

Kerry Co-op currently has a 70% stake in Kinisla, with the remaining 30% held by Kerry Group.

Kinisla processes over 1.2 billion litres of milk annually and generated turnover of €1.4 billion in 2025.

The processor previously confirmed plans to invest €300 million in the business over the next five years.

This will be focused on the main growth opportunities in the company, such as the consumer foods, retail and nutritional ingredients businesses.