The position of milk suppliers must be central in any agreement on the future ownership of the Kerry Group processing facilities, ICMSA president Pat McCormack has said.

The comments came following the ongoing speculation that the board of Kerry Co-op is set to formally submit an offer of €480m to buy a 60% majority stake in Kerry Group’s primary dairy business.

The ICMSA president has met with Kerry Co-op, and has sought a meeting with Kerry PLC.

Continued commitment

McCormack said that Kerry’s milk processing facilities are critical to farmers and the wider rural economies and it must be a fundamental requirement of any new structure that the position of milk suppliers is fully protected.

“We will be saying very clearly to every party involved that the processing of milk for Kerry suppliers must be placed on a firm financial footing in whatever new entity emerges.

“The new entity must deliver on the contractual obligations to milk suppliers, including the milk price commitment. This commitment was made by Kerry Group in 2011 and it is essential that it is delivered going forward.”