Kerry Group suppliers demanded an immediate reversal of the company’s 1c/l cut to its May milk price at a major protest in Charleville on Tuesday.
Farmers also called on the company to match the 40c/l being paid by neighbouring processors for milk.
Close to 400 dairy farmers from right across the Kerry Group catchment area brought the north Cork town to a standstill for the protest.
The farmers claimed that the 37c/l being paid by Kerry Group for milk was below the cost of production and demanded an immediate increase.
Pricing structure
The protesters also called on Kerry Group to review the pricing structure for farm inputs, such as feed and fertiliser, and to fully engage with the arbitration process around the company’s commitment to pay a leading milk price.
West Limerick milk supplier Michael O’Flynn said the protest reflected the frustration felt by ordinary Kerry Group milk suppliers.
Up to 500 farmers gathered at the Kerry Group's premises in Charleville to protest the milk price paid to suppliers. \ Donal O' Leary
One of the organisers of the protest, O’Flynn said the company’s decision to cut the May milk price by 1c/l to 37c/l convinced farmers that “action was needed”.
“There was no justification for the latest cut [in milk price]. When Dairygold was able to keep it at 40c/l, why was Kerry so far back?” he asked.
“Farmers are really frustrated and saying enough is enough. It is not good enough that a company like Kerry is at the bottom of the league when it comes to milk prices. They should be leading,” O’Flynn maintained.
He warned that further action will be taken if Kerry Group does not act on milk prices and on the arbitration issue.
“The company owe farmers up to €100m from arbitration,” he claimed.
Gerald Quain, another Limerick farmer and protest organiser, echoed O’Flynn’s warning that the protests will continue if Kerry Group do not respond on the immediate concerns around milk price and input costs.
“This campaign will continue if we don’t get a response on milk prices and the cost of meal and fertiliser. There is no real turning back at this stage,” Quain said.
Price comparison
Quain again pointed out that the Kerry Group base price is 3c/l below the 40c/l base price being paid by Dairygold for May milk and is 3.6c/l less than the average return of 42.6c/l that Dairygold suppliers will receive for last month.
“So, if you supplied 100,000l to both Kerry and Dairygold in May, the lads supplying Dairygold are more than €3,500 better off,” he explained.
Quain said suppliers want Kerry Group to fulfill its commitment to pay “a leading milk price”.
He accused the Kerry Group of “leading from the back” on milk prices.
Tuesday’s protest was supported by the main farm organisations, as well as the chair and some members of Kerry Co-op.
Damaged relationship
Kerry Co-Op chair Denis Carroll said: “Kerry Group plc needs to empathise more with milk suppliers and maintain its monthly milk price consistent with its commitment to paying the leading milk price.
"Failure to do so monthly only damages the relationship between suppliers and the plc. The gap in milk price will have to be compensated for when the leading milk price commitment is determined.”
Up to 500 farmers gathered at the Kerry Group's premises in Charleville to protest the milk price paid to suppliers. \ Donal O' Leary
Irish Creamery Milk Suppliers Association (ICMSA) dairy committee chair Noel Murphy said it was “totally unacceptable” that Kerry suppliers are receiving a base milk price of 2c to 3c/l below their neighbouring co-ops for the peak production month for milk.
The ICMSA representative called on Kerry Group to reflect on its decision to cut its May milk price, reverse it and bring milk price back into line with the top paying co-ops immediately.
Irish Farmers' Association (IFA) dairy chair Stephen Arthur has called on Kerry Group to close the widening gap in milk price between them and other dairy processors.
“We are calling on Kerry agribusiness to commit to addressing this widening gap with a significant supplemental payment in the June milk payments,” Arthur said.
Kerry Group suppliers demanded an immediate reversal of the company’s 1c/l cut to its May milk price at a major protest in Charleville on Tuesday.
Farmers also called on the company to match the 40c/l being paid by neighbouring processors for milk.
Close to 400 dairy farmers from right across the Kerry Group catchment area brought the north Cork town to a standstill for the protest.
The farmers claimed that the 37c/l being paid by Kerry Group for milk was below the cost of production and demanded an immediate increase.
Pricing structure
The protesters also called on Kerry Group to review the pricing structure for farm inputs, such as feed and fertiliser, and to fully engage with the arbitration process around the company’s commitment to pay a leading milk price.
West Limerick milk supplier Michael O’Flynn said the protest reflected the frustration felt by ordinary Kerry Group milk suppliers.
Up to 500 farmers gathered at the Kerry Group's premises in Charleville to protest the milk price paid to suppliers. \ Donal O' Leary
One of the organisers of the protest, O’Flynn said the company’s decision to cut the May milk price by 1c/l to 37c/l convinced farmers that “action was needed”.
“There was no justification for the latest cut [in milk price]. When Dairygold was able to keep it at 40c/l, why was Kerry so far back?” he asked.
“Farmers are really frustrated and saying enough is enough. It is not good enough that a company like Kerry is at the bottom of the league when it comes to milk prices. They should be leading,” O’Flynn maintained.
He warned that further action will be taken if Kerry Group does not act on milk prices and on the arbitration issue.
“The company owe farmers up to €100m from arbitration,” he claimed.
Gerald Quain, another Limerick farmer and protest organiser, echoed O’Flynn’s warning that the protests will continue if Kerry Group do not respond on the immediate concerns around milk price and input costs.
“This campaign will continue if we don’t get a response on milk prices and the cost of meal and fertiliser. There is no real turning back at this stage,” Quain said.
Price comparison
Quain again pointed out that the Kerry Group base price is 3c/l below the 40c/l base price being paid by Dairygold for May milk and is 3.6c/l less than the average return of 42.6c/l that Dairygold suppliers will receive for last month.
“So, if you supplied 100,000l to both Kerry and Dairygold in May, the lads supplying Dairygold are more than €3,500 better off,” he explained.
Quain said suppliers want Kerry Group to fulfill its commitment to pay “a leading milk price”.
He accused the Kerry Group of “leading from the back” on milk prices.
Tuesday’s protest was supported by the main farm organisations, as well as the chair and some members of Kerry Co-op.
Damaged relationship
Kerry Co-Op chair Denis Carroll said: “Kerry Group plc needs to empathise more with milk suppliers and maintain its monthly milk price consistent with its commitment to paying the leading milk price.
"Failure to do so monthly only damages the relationship between suppliers and the plc. The gap in milk price will have to be compensated for when the leading milk price commitment is determined.”
Up to 500 farmers gathered at the Kerry Group's premises in Charleville to protest the milk price paid to suppliers. \ Donal O' Leary
Irish Creamery Milk Suppliers Association (ICMSA) dairy committee chair Noel Murphy said it was “totally unacceptable” that Kerry suppliers are receiving a base milk price of 2c to 3c/l below their neighbouring co-ops for the peak production month for milk.
The ICMSA representative called on Kerry Group to reflect on its decision to cut its May milk price, reverse it and bring milk price back into line with the top paying co-ops immediately.
Irish Farmers' Association (IFA) dairy chair Stephen Arthur has called on Kerry Group to close the widening gap in milk price between them and other dairy processors.
“We are calling on Kerry agribusiness to commit to addressing this widening gap with a significant supplemental payment in the June milk payments,” Arthur said.
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