Around 500 Kerry Group suppliers staged a protest in Co. Cork today (Tuesday, June 20) over the price they are being paid for milk.
The demonstration at Kerry Group’s Charleville milk processing plant was organised by a group of milk suppliers that wants the company to bring the price paid to suppliers “into line with other processors”.
The suppliers said that Kerry Group’s milk price is now 3c/L behind the price being paid by neighbouring processors and is at the bottom of the 2023 milk price league.
The milk suppliers walked through Charleville and gathered outside a Kerry Group office in the town where they delivered a letter to management outlining their key demands.
In the letter, seen by Agriland, the milk suppliers said it was with regret that they were protesting but said they had “no choice”.
They claimed that Kerry Group had failed to honour its contract with milk suppliers to deliver the leading milk price.
The letter also referenced historic issues including arbitration between Kerry Group and milk suppliers.
Michael O’Flynn, who was among the three milk suppliers who delivered the letter to Kerry Group management, told Agriland that this is only the start of their campaign to secure a higher milk price.
The protest was supported by the chair of Kerry Co-op Denis Carroll and members of the co-op board.
There was also a strong presence from farming organisations including the Irish Farmers’ Association (IFA), the Irish Creamery Milk Suppliers’ Association (ICMSA) and Macra.
The IFA said that an average Kerry milk supplier – milking 90 cows – received about €2,000 less for their May milk when compared with other milk processors.
IFA president Tim Cullinan said that dairy farmers cannot endure anymore milk price cuts.
“It’s very important that we’re all at one and working together.
“We want to send a clear message to the industry that dairy farmers are not going to continue taking reduction after reduction each month.
“It’s time for the cooperatives to look at their own businesses, look at their efficiencies and ensure they can drive a better return for farmers,” he said.
Noel Murphy, chair of the ICMSA Dairy Committee, said that it is totally unacceptable that Kerry suppliers are receiving a base milk price of 2-3c/L below their neighbouring co-ops for the peak production month for milk.
He said the Kerry Group milk price is putting its suppliers “at a considerable disadvantage” and called on the processor to reverse its decision to cut the price for May milk supplies.
Kerry Group
Last week Kerry Group said it would pay suppliers a base milk price of 37c/L, including VAT, for milk at 3.3% protein and 3.6% butterfat.
This represented a drop of 1c/L by the processor from the base price of 38c/L for April supplies and equates to 40.61c/L including VAT at EU standard constituents 3.4% protein and 4.2% butterfat.
In a statement to Agriland, Kerry Group said: “Regarding milk prices, global dairy markets have struggled throughout the first half of 2023 and remain volatile.
“Kerry continues to monitor dairy market returns and is fully committed to its contractual agreement to pay a like-for-like leading milk price to suppliers.”