A cohort of Kerry Group milk suppliers is set to explore the possibility of establishing a milk producer group.
As part of their ongoing milk price campaign, around 300 suppliers gathered last night (Wednesday, August 30) at Woodlands Hotel in Adare, Co. Limerick.
The meeting follows two separate protests by milk suppliers outside the Kerry Group plant in Charleville, Co. Cork and the company’s headquarters in Tralee, Co. Kerry in recent months.
The suppliers claim that the price paid by Kerry Group for milk over the first six months of the year is down by around 3.5c/L compared to other processors.
Earlier this month, Kerry Group announced that it will pay suppliers a base price of 34c/L for July milk, plus a milk contract payment of 3c/L on qualifying milk volumes.
Suppliers who will be in line for the additional payment will see a price offering of 37c/L, including VAT, at 3.3% protein and 3.6% butterfat.
Milk suppliers
Last night’s meeting discussed suppliers’ “anger and despair” at the milk price being paid by Kerry Group, the ongoing arbitration case related to historical payments and milk mobility.
Martin Crowe, a Kerry Group milk supplier from Doon, Co. Limerick, took the role of acting chair for the night.
It is understood that Mike Doody from Newcastle West will chair the group going forward.
“We all know how bad things are. It’s 2009 all over again with weather and milk price coming so bad, but the difference this year is costs are through the roof and that’s where it is really catching,” Crowe said.
The meeting heard repeated calls for the milk suppliers to be united and organised in their campaign for higher milk prices.
“Whatever we’re doing here today, we’re united; whether it’s a supplier milking 20 cows or 1,000 cows,” Crowe said.
Some suppliers suggested holding a protest outside Kerry Group’s Global Technology and Innovation Centre in Naas, Co. Kildare, as they felt that previous demonstrations had been “virtually ignored” by the processor.
“I want to be respected as a supplier, I want to be valued as a supplier,” one farmer said.
“I feel we’re being insulted every month with the milk price we’re getting because they’re supposed to be paying the leading milk price and every month it’s getting worse. I feel like it’s an insult every month,” another said.
“No industry will survive if you’re producing a product below the cost of production. We cannot make the price of milk, but all we want is equal to or better than everyone else,” a supplier added.
Kerry Group
As their current contracts are due to expire at the end of 2025, the Kerry Group milk suppliers were particularly interested in the issue of milk mobility.
The suppliers agreed to explore the possibility of establishing a milk producer group, similar to what has been developed in the beef sector.
The meeting heard that this group would aim to negotiate with milk purchasers on behalf of suppliers.
“Our milk is the only thing that will bind us together,” one supplier commented.
The suppliers are planning to hold another meeting in around three weeks’ time in Templeglantine, Co. Limerick, where the establishment of a producer group will be discussed again.