Kerry milk suppliers to share €30m goodwill payment

Kerry milk suppliers will receive a goodwill payment of 3 cent per litre in an interim agreement between Kerry Group and Kerry Co-Operative Creameries Limited in relation to milk price arrangements

The payment understood to be worth approx €30m stems from a milk price dispute dating back to 2015 when Kerry‘s commitment to pay a “leading milk price” nationally on a “like-for-like basis” came in to question.

Kerry Group offered a payment of 1.75c/l to resolve the dispute in 2017, but this was rejected by the milk suppliers, and an arbitration process ensued last year.

The arbitrator ruled that the milk price paid the West Cork co-ops must be included in the computation of this leading price.

Today it has been agreed that Kerry Group will make a goodwill payment of 3 cent per litre.

The goodwill payment, to be paid in mid-January 2020, will be calculated based on the average annual milk supplied for years 2015 through 2019 and includes any additional payment arising from the Milk Supply Contract in 2019.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Neither Kerry Group nor any milk supplier has waived rights as a result of this payment.

Both parties view this agreement, endorsed by the Board of Kerry Co-Operative Creameries Limited, as an important first step which allows for discussion on a future long-term sustainable relationship.

Get the latest news from the Farming Independent team 3 times a week.

Sign Up

#bb-iawr-inarticle- { clear: both; margin: 0 0 15px; }

Online Editors

table#imageAlign { text-align: left; width: 100%; border: 0 !important; font-size: 14px; font-family: Arial, Helvetica, sans-serif; } #imageAlign td { padding: 8px; border: 0; }

For Stories Like This and More
Download the Free Farming Independent App

Leave a Reply

Your email address will not be published. Required fields are marked *

*