Kerry milk suppliers are expecting a milk price top-up after a ruling made by an independent arbitrator last Friday. He ruled that the west Cork prices should be included when calculating the Kerry Group “leading” milk price.

Kerry milk suppliers could be set to get a significant milk price top-up unless Kerry Group management can prove that the businesses of Kerry and the west Cork Co-ops are not comparable. Negotiations between the “leading milk price” subcommittee of Kerry Co-op and management at Kerry Group are set to resume following the recent arbitrator ruling.

Each side now has three weeks to go back to the arbitrator to question or appeal any point of law details.

The starting point in negotiations for Kerry Co-op will be the average 2 c/litre milk price difference between the west Cork co-ops and Kerry Group in the annual Irish Farmers Journal/KPMG milk price review for the last four years.

Kerry management will argue that the price top-up will only be a fraction of this, some bonuses have already been paid, some are not applicable, and any bonus will only apply for a much shorter time frame.