An agreement between Kerry Group and Kerry milk suppliers over the contentious leading milk price issue is thought to be very close.
The Irish Farmers Journal understands talks between Kerry Group and Kerry Co-op’s leading milk price committee have made progress over the last week and an offer to farmer milk suppliers is close to being finalised.
This means Kerry milk suppliers could be in line for another top-up payment on all milk supplied over recent years, similar to the 3c/l goodwill payment received in January 2020.
However, it’s understood the leading milk price settlement will come with a number of conditions, including whether the joint venture proposal between Kerry Co-op and Kerry Group goes ahead.
Advisory firm PWC has recently completed its due diligence of Kerry Group’s primary dairy business but it’s believed the board of Kerry Co-op wish to resolve the leading price issue before advancing further in the joint venture process.
An official announcement on both the joint venture and the leading milk price issue is likely to happen in the coming days or weeks.