Milk suppliers continue price protest

KERRY GROUP liquid milk suppliers yesterday threatened to escalate their protests against price cuts being imposed by the group.
Milk suppliers continue price protest

Many of the 320 suppliers of liquid milk, that sold in the shops, protested outside Dawn Dairies bottling plants in Limerick (2), Killarney and Galway and said their campaign would continue in the coming weeks.

The supplier/shareholders claimed they would lose substantially more than the six cent per gallon reduction being implemented by the group.

Kerry Dairies Advisory Committee chairman Michael Gabbett said suppliers each stood to lose several thousand euro, with some losing between 10 cent and 19 cent per gallon.

“I believe the six cent per gallon figure was produced by averaging the cut over all the milk, liquid and manufacturing, produced by all suppliers to Kerry who operate under a liquid or winter-type contract,” he said.

“In other words, averaging the effect of the new system camouflaged the extent of the true cut suffered by liquid milk producers and this meant that the co-op and PLC board members accepted the new system without knowing its true impact.”

A spokesman for 40 suppliers, who protested at the entrance to the Killarney Dawn Dairies plant for an hour yesterday, said they were highly dissatisfied with the new price structure.

Prominent IFA members took part in the protest.

However, Kerry Group management insists market realities have to be faced, pointing to the impact made by cheaper milk from the North, which has around 16% of the market.

A group spokesman said: “This is also in the interest of the supplier.”

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