Kinisla has announced that a payment of 1.3c/L will be paid on milk supplied under its milk supply contract from January to April.

The processor said that Kerry Creameries Limited, the Kinisla subsidiary which actually purchases the milk from farmers, will pay an additional 1.3c/L, including VAT, in respect of all milk supplied under the milk supply contract during the period from January 1 and April 30.

The payment will be based on average Kerry Creameries Limited solids.

Kinisla said that the decision followed consultation with the board of Kerry Co-op, the majority owner of Kinisla.

According to the processor, the additional payment announced today (Tuesday, August 11) will amount to €4 million.

Contract

The top up payment covers the final four months of the last milk supply contract between suppliers and the business then known as Kerry Dairy Ireland.

A new contract, which came into effect from May 1, was sent around to suppliers in April.

This new contract came with a deadline of August 4 for suppliers to sign.

Kinisla said on a number of occasions that it would be under no obligation to collect milk after August 4 from a supplier who had not signed the contract before or on that date, notwithstanding that the supplier in question might be a member of Kerry Co-op, the majority shareholder in Kinisla.

2025 financials

Late last month, the financial performance of Kinisla for 2025 was revealed through a set of published accounts.

The annual report of Kerry Co-Operative Creameries, which primarily reflects Kinisla's performance, shows that revenue reached almost €1.4 billion last year.

Kinisla is 70% owned by Kerry Co-op, with the remaining 30% owned by Kerry Group.

According to the financial statements, earnings before interest, tax, depreciation and amortisation (EBIDTA) stood at €81.3 million.

Operating profit was €47.8 million, while profit after tax was recorded at €32 million.

The accounts show that net debt at the end of the year were €69 million.