Discussions open on Kerry's 1.75c/l 'goodwill' offer to milk suppliers

 

Lousie Hogan

Discussions are expected to take place today between the Kerry Co-op and Kerry Agribusiness over the 1.75c per litre 'goodwill' offer on the 2017 milk supply.

The proposed deal which would be worth close to €21m or €6,500 on average per supplier was made in an attempt to resolve the dispute between the company and milk suppliers over the "leading milk price" issue.

A meeting is due to take place between the co-op sub-committee and Pat Murphy of Kerry Agribusiness on the offer which was made on the basis it would resolve the milk price issue for 2015, 2016 and this year. The offer also proposes that the arbitration case from 2015 would be withdrawn.

Meetings

It is understood that views at the co-op have been mixed on the offer, with some of the opinion an arbitration case relating to 2016 should be pursued.

Co-op board chairman Mundy Hayes said advisory meetings have been taking place with farmer suppliers in the region.

He said the suppliers in general appeared to be grateful in relation to the offer which had broken the stalemate.

However, Mr Hayes stressed: "All were very adamant that there has to be clarity going forward."

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