Kerry Group shares up as chief executive McCarthy leaves co-op role
Published 11/05/2016 | 02:30
THE share price in Kerry Group rose in early morning trading on the back of confirmation boss Stan McCarthy was going to step back from his role with the founding co-op.
A row over milk prices has been simmering between the Kerry Co-op, which holds a 13.7pc stake worth over €1.8bn in Kerry Group plc, and management of the plc.
Relations are understood to have become strained in recent times, however, a spokesman for the Kerry Group would not comment on the reasons behind Mr McCarthy stepping down.
Dairy spokesman for the Irish Creamery and Milk Suppliers Association (ICMSA) Gerald Quain said there has historically been a strong relationship between milk suppliers, Kerry Co-op and the Kerry Group plc. He said it was important for all parties that the relationship is maintained. "In relation to paying the leading milk price, it's true that this has been a bone of contention and it is essential that the parties tasked with delivering this commitment reach a conclusion as soon as possible."
The issue of a '13th payment' to milk suppliers to top up the price paid last year is due to go to mediation.
Shares in Kerry Group surged by almost a euro to €80.93 in early morning trading on the Irish Stock Exchange, while they finished up 50c at €80.50. A spokesman for Kerry Group said Mr McCarthy and the Kerry Group would continue to meet farmers, milk suppliers and engage with all shareholders.