Farmer suppliers to Kerry Dairy Ireland (KDI) will be issued with new milk supply contracts in early April, the company has confirmed.

Existing milk supply contracts for KDI farmers run until the end of April this year and there has been mounting concern regarding the issue.

However, in response to a query from the Irish Farmers Journal, KDI stated that: “It is anticipated new milk supply contracts will be issued to milk suppliers in early April.”

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While the news has been broadly welcomed, the chairperson of Munster Dairy Producers Organisation (MDPO), James Doyle, cautioned that there have been many “false dawns” in relation to KDI contracts.

“Milk suppliers have been promised a draft of a new contract many times before but target dates have come and gone, and no contract has circulated to farmers,” Doyle said.

The MDPO chair urged KDI to follow through on the current commitment to deliver a contract in early April, given that suppliers may have only three weeks to consider the document.

“Farmers must be given sufficient time to consult and get advice on the draft new contract, any further delay is totally intolerable,” Doyle said.

Meanwhile, Doyle claimed the recent decision in Brussels to grant a derogation to co-ops from the requirement on food processors to provide mandatory supply contracts to their farmer suppliers raised questions for KDI.

“Who exactly will be the purchaser of the milk? Will it be Kerry Co-op or KDI, which is a company?” he asked.

“MDPO will seek direct negotiations on all elements of the new contract on behalf of its members with KDI,” Doyle said.