The arbitration hearing between Kerry Group and Kerry Co-op regarding the level of a 13th payment milk price bonus has concluded. Final oral arguments were heard last Monday. The arbitrator will now consider the evidence, with his decision expected early in the new year.

Meanwhile, the co-op has told the Irish Farmers Journal the results of its consultation process have been collated. “This is one element in the preparation of our strategy which is in the process of being developed. We have to also take account of trends in our industry, the economic and social factors, the competitors, the market conditions and so on. We will revert to our shareholders in due course,” Kerry co-op’s corporate secretary Thomas Hunter McGowan said.

The consultation polled shareholders on whether to exercise the option to purchase Kerry Group’s Agribusiness. The January 2019 deadline for triggering the process is only two months away, with 12 months for due diligence and completion.

“If the board after completing the due diligence are of the view that the purchase should not proceed, this will bring the matter to an end,” McGowan said. “This point of decision will probably be reached by mid-year but may be earlier.” The acquisition would require the support of 60% of A and B shareholders at a special general meeting (SGM) for approval.

There is a clause that would bind 85% of the co-op’s milk pool to Kerry for seven years from the date of purchase.