DEAR SIR: We, Kerry dairy farmers, are disappointed by the recent Kerry newsletter, because we all know that we were misled on the price they pay us for our milk.

It was arrogant because there was a blank refusal to pay us the leading milk price, not showing us exactly how they calculated their figures.

Kerry has added six opt-out clauses to the milk supply agreement in the small print to ensure that it can pay as poor a milk price as it can get away with.

Kerry’s interpretation of its definition of like-for-like basis means that any of the six clauses pertaining to other milk processors that would increase our milk price is ruled out and is used instead to reduce our milk price.

In its definition of “like-for-like leading milk price” it uses the term “appropriate deductions” and taking account of six clauses.

The proper meaning of the term “taking into account” is, taken into consideration.

Clause A concerns Kerry’s volume processed and supply curve. Kerry can make substantial savings by closing processing facilities in the winter period. Some of those savings should be passed back to the milk suppliers. Kerry uses clause C to reduce our milk price because it says other processors’ milk price includes profits from activities other than trading of raw milk. This is what it is doing with the west Cork milk price comparison.

Clause D – other processors pay milk price bonuses to offset the high cost of producing milk in January, February and March. They are thus in a weaker position to pay a high price over the summer period. This is the time of the year when Kerry wants to be compared with them for obvious reasons. It is not appropriate for Kerry to ignore these milk price bonuses. It should at least increase the price for November, January, February and March on a like-for-like basis.

I hope this above letter explains why Kerry are so far down compared to other milk processors in the annual Irish Farmers Journal/KPMG milk price report.

Kerry should never again say it is paying the leading milk price on a like-for-like basis without also including the six opt-out clauses in the same statement. Otherwise it is a dishonest and misleading statement.

I believe that there is no justice in Kerry using them as an excuse to reduce our milk price.

Eight cent per litre on one year’s supply is owed to us for the past six years – equivalent to €40,000 for the average supplier. If Kerry pays up now, it may regain our trust again.