Mediation talks continue between representatives of Kerry Co-op and Kerry Group plc.

Talks ended in stalemate last week, so it looks like both parties are heading for arbitration, the next stage in the negotiation process.

The Irish Farmers Journal understands that an appointed arbitrator would then make an informed judgment on his/her understanding of the Kerry milk contract.

In the mediation talks, Kerry Co-op is represented by the chair James Doyle and three other members of the Kerry Co-op board.

Kerry Group recently topped up the 2015 milk price by 0.6 c/litre for all milk supplied in 2015 in light of the hardship Kerry milk suppliers suffered in 2015.

Kerry suppliers are arguing they need a 1.4 c/litre bonus to match other leading prices paid in Ireland for 2015.