Members of the Munster Dairy Producers Organisation (MDPO) have sought to negotiate with Kerry Co-op on new milk supply contracts.
A meeting of around 60 farmers at the South Court Hotel in Limerick on Thursday night heard from interim chair of the MDPO James Doyle and barrister Ciarán Dolan.
Kerry suppliers have been given until 4 August to sign the new contract.
“The reasons that we’re here is the people are worried, very worried about their future going forward with regard to dairying,” he said. He claimed the contract issued to suppliers was “absolutely a one-sided document”.
Doyle said that farmers have “plenty of time” until the 4 August deadline to negotiate the contract for milk suppliers.
Dolan said that he had not compared the new Kerry contract to that of other co-ops, but that in his view it “goes further than required”.
Guaranteed milk collection
Martin Crowe, a Kerry Co-op board member who attended the meeting, said the board went through contracts a couple of times with James O’Connell, Kerry’s director of agribusiness, at board level prior to it being sent to farmers.
Crowe, who was involved in the establishment of the MDPO, said that “the only ultimate thing that’s there for farmers is they’re guaranteed that their milk is collected”.
He said the co-op is “ultimately is controlled by farmers, which it hasn’t been heretofore”.
Vice chair of Kerry Co-op Conor Creedon responded to a question around audits of farms which is included in the contract.
“Kerry Dairy Ireland (KDI) is not going to be inspecting farmers willy nilly. KDI has a right, as they had under last contract, to go in an inspect the premises,” he said.
He said Kerry now has a large consumer food business and if a non-compliance or an animal welfare breach on farm is linked back to KDI “it has very serious implications because that is where the money is coming to pay your milk price”.
He said the condition of the contract has “very rarely been used and is only used in extreme cases”.
ICMSA
Irish Creamery Milk Suppliers Association (ICMSA) Limerick county chair and Kerry supplier James O’Donnell told the meeting that the ICMSA would be meeting with Kerry next week on the contracts.
He said the ICMSA legal team is currently examining the contract.
“The one thing I will say is I would urge everyone to hold off – if you sign it, we’ve no bargaining power. If half sign, everyone else is left out to dry,” he said.
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Members of the Munster Dairy Producers Organisation (MDPO) have sought to negotiate with Kerry Co-op on new milk supply contracts.
A meeting of around 60 farmers at the South Court Hotel in Limerick on Thursday night heard from interim chair of the MDPO James Doyle and barrister Ciarán Dolan.
Kerry suppliers have been given until 4 August to sign the new contract.
“The reasons that we’re here is the people are worried, very worried about their future going forward with regard to dairying,” he said. He claimed the contract issued to suppliers was “absolutely a one-sided document”.
Doyle said that farmers have “plenty of time” until the 4 August deadline to negotiate the contract for milk suppliers.
Dolan said that he had not compared the new Kerry contract to that of other co-ops, but that in his view it “goes further than required”.
Guaranteed milk collection
Martin Crowe, a Kerry Co-op board member who attended the meeting, said the board went through contracts a couple of times with James O’Connell, Kerry’s director of agribusiness, at board level prior to it being sent to farmers.
Crowe, who was involved in the establishment of the MDPO, said that “the only ultimate thing that’s there for farmers is they’re guaranteed that their milk is collected”.
He said the co-op is “ultimately is controlled by farmers, which it hasn’t been heretofore”.
Vice chair of Kerry Co-op Conor Creedon responded to a question around audits of farms which is included in the contract.
“Kerry Dairy Ireland (KDI) is not going to be inspecting farmers willy nilly. KDI has a right, as they had under last contract, to go in an inspect the premises,” he said.
He said Kerry now has a large consumer food business and if a non-compliance or an animal welfare breach on farm is linked back to KDI “it has very serious implications because that is where the money is coming to pay your milk price”.
He said the condition of the contract has “very rarely been used and is only used in extreme cases”.
ICMSA
Irish Creamery Milk Suppliers Association (ICMSA) Limerick county chair and Kerry supplier James O’Donnell told the meeting that the ICMSA would be meeting with Kerry next week on the contracts.
He said the ICMSA legal team is currently examining the contract.
“The one thing I will say is I would urge everyone to hold off – if you sign it, we’ve no bargaining power. If half sign, everyone else is left out to dry,” he said.
Read more
No share-up rule in new Kerry contracts
PO group tells Kerry farmers to reject contracts
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