Kerry suppliers believe quotas are under threat
The allocation of quota to liquid milk producers supplying Kerry Group is under review, amid concern among producers that their quotas may be reduced to reflect the requirement of the processors.
A contract with Tesco for supply of own-brand milk, previously held by the Kerry Group in the west, has transferred to another supplier following an intensely competitive tendering process.
Talks are understood to be ongoing between Kerry Group and Arrabawn Co-op on the possible purchase by Arrabawn of the Kerry liquid milk processing plant at Oranmore, Co Galway, on which both sides are remaining tightlipped.
A spokesperson for Kerry Group confirmed the milk quota allocations to suppliers were under review.
However, he added that no decision had been made and suppliers had not been contacted to advise of any change in their quota.
Suppliers to the liquid milk division have described as "very worrying" their concerns that their milk quotas will be reduced in line with the requirements of the society.
"It is a very difficult time for suppliers and any reduction in the milk quota would be a serious blow for most of the farmers supplying Kerry," a Kerry supplier said.