Pledge on milk price persuades Kerry voters
Published 26/07/2011 | 05:00
An assurance by Kerry Group boss Stan McCarthy on milk price and future processing rights was credited with assuaging supplier concerns ahead of last week's decision by Kerry Co-op shareholders to clear the way for a reduction in the co-op's stake in the Plc.
Kerry Co-op milk suppliers have voted in favour of rule changes that allow the co-op's shareholding in Kerry Group Plc to drop below its current 20pc threshold.
The proposal, which has been accepted by 79.8pc of shareholders, allows for the establishment of a new threshold of 10pc plus one share.
In his presentation to suppliers before the key vote, Mr McCarthy confirmed that Kerry would pay a leading milk price "referenced to the price paid for comparable milk constituents by major Irish milk processors".
In a statement issued later, Mr McCarthy stated that by 'leading milk price' he meant a price based on dairy market performance, on a like-for-like basis for comparable milk constituents.
"Kerry would pay a milk price at least equivalent to that paid by other major Irish milk processors," he said.
Meanwhile, a spokesman for Kerry Group denied that the recent milk price hike by the processor was in any way influenced by last week's ballot.