Farmers protest over 'ridiculous' price being paid for milk

Kerry confirmed last week it had reduced its base price by 1c to 37c per litre

Farmers protesting at Kerry Group's offices in Charleville, Co Cork. 

Up to 500 dairy farmers gathered outside Kerry Group’s buildings in Charleville, Co Cork, to protest at what they say is the “ridiculous” price being paid to farmers for milk.

Kerry confirmed last week that it had reduced its base price by 1c to 37c per litre.

There has been a significant drop in prices seen this year from the historic highs of 2022. 

A Kerry Group supplier received a base price of 56c per litre for December supplies. 

However, the costs of inputs have not been so quick to drop.

At the protest, farmers called for an increase in milk price, as the current price is “now 3c per litre behind” what is being paid by neighbouring processors.

Seamus Crawford, Gerard Quain and Michael O'Flynn, arriving to Kerry Group offices with a letter in Charleville. Picture: Brendan Gleeson

The board of Kerry Co-op joined Kerry milk suppliers at the protest.

Kerry Co-op chairman Denis Carroll commented: "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."

Seamus Crawford, who is a Kerry Co-op board member, told the Irish Examiner they decided to protest after three farmers came to him and the idea “spiralled from there”.

Farmers were at the point of “crying out for something to be done”, Mr Crawford, who is from Garryspillane in Co Limerick, said.

He said farmers turned out today “to protest the ridiculous milk price Kerry has given us for the month of May, the biggest month in the year for a supplier”.

The “peaceful protest” consisted of around 500 farmers from across Munster marching to the Kerry Group offices to hand in a letter.

Mr Crawford, along with Ger Quain and Mike O’Flynn, submitted the letter on behalf of the crowd.

The two-page letter reads: “It is with regret that we have no choice but to come and protest here today.

“This is due to your failure in honouring our contract with you, to deliver the leading milk price.” 

An arbitration process was also referenced in the letter.

After the letter was handed in, the men said that management in Kerry promised it would be disseminated amongst senior figures in the company.

The men stressed to the management that “the 3c needs to be reimbursed to us as soon as possible and we need Kerry to lead from the front rather than behind”.

They also called for “movement on the arbitration”.

They said that the protest “is only the start of this campaign”, and if they “don’t get some movement” on the issues raised, “we will be going further”.

Farmers' milk price protest at Kerry Group offices in Charleville. Picture: Brendan Gleeson

Mr Crawford said the protest was about “making our statement, and the ball is back in Kerry’s court”.

He said that the situation for farmers is “very serious”, and the loss of income in May — estimated by many to be up to €3,000 on the average farm — is something they “can’t cope with”.

“People are on their knees,” he said.

The protest today was supported by farm organisations. Irish Farmers’ Association president Tim Cullinan told the Irish Examiner that it was “very important” for farmers to turn out for today’s protest.

“The core issue here is there is a substantial drop in milk price by Kerry, and we haven’t seen such aggression in price reduction by other co-ops,” he said.

“We have to send a key message here now — over the last year, dairy farmers have been dealing with massive inflation in the cost of production and now, we have the other scenario where the price of milk is dropping.” 

IFA president Tim Cullinan leading the protest. Picture: Brendan Gleeson

He added that Kerry has to “go back and look at how it’s doing its business, where it’s sourcing markets, and ensure there is a return for farmers”.

He said there is a risk of the sector becoming “unviable”.

Pointing to the huge investment into their enterprises made by dairy farmers in recent years, Mr Cullinan said “they have to get a return on their investment and ensure the viability of family farms”.

'We supply the milk'

Dairy farmer Louise Crowley from Croom in Co Limerick said it is “disappointing” for suppliers to see the price for their produce “constantly being dropped”.

“To see me getting a lesser price than my neighbours who happen to be with other suppliers is unfathomable,” she said.

“We’re now at the point we’re getting paid less than what it’s actually costing to produce the product.” 

Louise Crowley, Croom, taking part in the protest. Picture: Brendan Gleeson

She said she hopes that Kerry will listen to farmers’ concerns.

“At the end of the day, we supply the milk; without us, what are they going to be at?” 

James O’Donnell, who is from Kilmallock, told the Irish Examiner at the protest that "there needs to be a floor put under this milk price because it’s just not sustainable going forward".

“We can’t keep going downwards. The costs haven’t gone down, my net costs this year are down about 10% and the milk price is down around 40%," he said.

“I feel sorrier for younger farmers, who have taken on very heavy commitments and weren’t expecting this sudden fluctuation in milk price.”

Farmers have indicated to the Irish Examiner that further protests in the near future have not been ruled out. 

Kerry Group in a statement said that global dairy markets have struggled during the first half of this year, and remain volatile.

Kerry said that it “continues to monitor dairy market returns and is fully committed to its contractual agreement to pay a like-for-like leading milk price to suppliers”.