In a letter dated 23 November and seen by the Irish Farmers Journal, a legal firm representing milk suppliers to Kerry Group in their dispute with the processor over its “leading milk price” contractual promise has offered the farmers to extend their claim to 2016.
The dispute over the 2015 price has been referred to an arbitration process and the letter informs farmers that “proceedings are nearing completion with a hearing date likely for early 2018”.
Solicitors say that they sought an extension before filing claims for 2016 to wait for the outcome of this hearing but “unfortunately this extension of time has not been agreed by Kerry Creameries Limited”.
As a result, they are now seeking instructions from their clients to include the 2016 milk price in the dispute.
A spokesperson for Kerry Group said this was incorrect as the company had already accepted a previous six-month extension while waiting for progress in the arbitration process.
Kerry plc has offered co-op members a 1.75c/l payment based on 2017 supplies to end the dispute over 2015, 2016 and 2017 prices.
“We offered 1.75c/l to draw a line in the sand and that’s under discussion at the moment,” the Kerry spokesperson said.
In their letter, solicitors advise the farmers that “the offer that has been made would require the withdrawal of the arbitration proceedings and it does not suggest any agreed framework for future years or to put in place procedures to avoid disputes of this nature arising”.
Not for public debate
They contrast the offer with the 4.2c/l they say would be required to achieve the leading milk price during those years.
The Kerry Group spokesperson said this was not to be debated publicly as it was part of the arbitration process. The solicitors wrote that they are willing to engage in discussions to resolve the dispute.
Kerry Co-op chair Mundy Hayes thanked Kerry Group chief executive Edmund Scanlan for putting the 1.75c/l offer forward, but said that the co-op had gone back to the plc seeking more details on this “initial verbal offer”, including on future management of the leading milk price promise.
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More Christmas tax bills for Kerry Co-op members
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In a letter dated 23 November and seen by the Irish Farmers Journal, a legal firm representing milk suppliers to Kerry Group in their dispute with the processor over its “leading milk price” contractual promise has offered the farmers to extend their claim to 2016.
The dispute over the 2015 price has been referred to an arbitration process and the letter informs farmers that “proceedings are nearing completion with a hearing date likely for early 2018”.
Solicitors say that they sought an extension before filing claims for 2016 to wait for the outcome of this hearing but “unfortunately this extension of time has not been agreed by Kerry Creameries Limited”.
As a result, they are now seeking instructions from their clients to include the 2016 milk price in the dispute.
A spokesperson for Kerry Group said this was incorrect as the company had already accepted a previous six-month extension while waiting for progress in the arbitration process.
Kerry plc has offered co-op members a 1.75c/l payment based on 2017 supplies to end the dispute over 2015, 2016 and 2017 prices.
“We offered 1.75c/l to draw a line in the sand and that’s under discussion at the moment,” the Kerry spokesperson said.
In their letter, solicitors advise the farmers that “the offer that has been made would require the withdrawal of the arbitration proceedings and it does not suggest any agreed framework for future years or to put in place procedures to avoid disputes of this nature arising”.
Not for public debate
They contrast the offer with the 4.2c/l they say would be required to achieve the leading milk price during those years.
The Kerry Group spokesperson said this was not to be debated publicly as it was part of the arbitration process. The solicitors wrote that they are willing to engage in discussions to resolve the dispute.
Kerry Co-op chair Mundy Hayes thanked Kerry Group chief executive Edmund Scanlan for putting the 1.75c/l offer forward, but said that the co-op had gone back to the plc seeking more details on this “initial verbal offer”, including on future management of the leading milk price promise.
Read more
More Christmas tax bills for Kerry Co-op members
Full Kerry coverage
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