The board of Kerry Co-op has decided to suspend the proposed share-up collection of 1c per litre of milk supplied, which was due to start in April.

The share-up, which was due to continue until a total of 5c per litre was reached, was introduced as part of the buyout of Kerry Dairy Ireland (KDI), which saw the co-op take a 70% stake in the processor.

According to a presentation produced at the time of the takeover, the share-up was expected to raise €50m towards the purchase of the balance of KDI, which is still owned by Kerry Group.

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The co-op said on Monday 2 March that the share-up was being suspended “in light of milk prices currently running well below the cost of production”.

The board of the co-op concluded that proceeding at this time would place undue pressure on suppliers.

The board said the position would be kept under review “and updated in line with market developments”.