Kerry offers fixed prices
Kerry is offering a fixed-price milk scheme to its 3,900 suppliers up to 2018 at a VAT inclusive price of 34c/l.
In a letter this week Kerry Group said the new initiative was open to all contracted farmers and was a reflection of the company's desire to build a sustainable supply base.
The company specified that farmers could fix up to 20pc of their supply under the scheme.
The 34c/l is a VAT inclusive price and supplies had to exceed milk solids levels of 3.35pc protein and 3.84pc butterfat.
Kerry also insisted that the price included all bonuses and would be subject to deduction of penalties "in line with milk grading".
The company also pointed out that the contract was "binding" and farmers could not withdraw from the agreement before the 36 months had expired. The start date for farmers entering the scheme is March 1.