Pledge on milk price persuades Kerry voters
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.