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.
ADVERTISEMENT
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”.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
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.
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”.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS