Kerry milk price pledge welcomed by farm groups

KERRY Group has given firm commitments on milk price and any capital investments required for future processing at strategy meetings with farmer groups in Dublin yesterday.

The IFA and the ICMSA particularly welcomed Kerry Group chief executive Stan McCarthy’s promise to pay farmers the market-leading price per litre for milk during the February to October high grass-growing season. This commitment is likely to be formalised by early 2012, if not before the end of this year.

For farmers in the group’s core Kingdom hinterland, this will give the confidence boost they have been seeking to plan for expansion in the 2015 post-quota era. It will also virtually guarantee that Kerry Co-op members will confirm the transfer of 25% of their shares to the plc, scheduled to be rubber stamped at a meeting in Tralee on August 16.