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The “leading” milk price commitment will continue to be part of any future deal with milk suppliers, according to Kerry Group plc chief executive Edmond Scanlon.
Speaking exclusively to the Irish Farmers Journal at the release of Kerry Group plc’s most recent set of financial results, Scanlon said: “We’ve signed up to this. There is an expectation from our farmers and there is a commitment there from the plc.”
Last month, Kerry paid a retrospective 3c/l top-up on the average supply delivered over the previous five years unconditionally to all milk suppliers
There was some concern that the leading milk price commitment might be discontinued in future milk supplier contracts following tensions between the co-op board and the plc in recent months. Last month, Kerry paid a retrospective 3c/l top-up on the average supply delivered over the previous five years unconditionally to all milk suppliers.
There was some speculation that further milk price top-ups would follow to bolster last month’s payment with negotiations ongoing but the Kerry chief executive was reluctant to comment on specific details.
He said: “The co-op is our biggest shareholder. It supplies our milk. We have a lot to talk about, but there is nothing specific to talk about in the ongoing relationship.”
Scanlon ruled out any return to the situation that existed previously where Stan McCarthy acted as chief executive of Kerry Co-op as well as holding the position of CEO of the plc.
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