KERRY milk suppliers who entered into fixed price contracts are feeling “abandoned and ignored by the company”, according to Limerick IFA chairman Sean Lavery.
Worry and anger building among dairy farmers in Limerick
Fixed milk price contracts were supposed to be safety nets but a massive hole has appeared in them, according to the IFA's Sean Lavery

Mr Lavery was speaking after a meeting of over 40 such suppliers in the Limerick area, in the Deebert House Hotel in Kilmallock.

“Over the past number of months I have received numerous calls from worried farmers who have milk fixed with Kerry, as the year progressed, they hoped that Kerry, like other neighbouring processors would offer support but unfortunately the support has been minimal.

“As an example, a supplier to a neighbouring co-op will receive 6 cent per litre of a support on all their fixed milk for 2022 while Kerry suppliers will receive less than 1 cent per litre,” said Mr Lavery.

He continued: “There was a lot of anger in the room on the night and this appears to be a bigger problem than Kerry have been willing to admit. The stress this is causing farmers is something that must also be remembered.”

On the evening, a confidential questionnaire was undertaken to discover the extent of contracts undertaken by suppliers in the room.

Mr Lavery said that “based on financial models presented earlier in the meeting, one would be worried that the financial impact will be severe for those with high percentages committed”.

“I am calling on Kerry to step up on this issue. A scheme was offered earlier in the year that would see farmers having to fix milk for a further year in order to avail of it, at no cost to Kerry, this is simply not enough.

“Kerry, at the very least must match the direct supports other processors have given their suppliers,” said Mr Lavery.

Kerry have been contacted for comment. There was no response to a media query from Limerick Live.

Fixed milk price contracts were supposed to be safety nets but a massive hole has appeared in them with many Limerick farmers falling into financial difficulties.

For example, one Limerick farmer signed a contract in late 2021 for 80% of his milk at 38cpl. Now the base price is closer to 60cpl. In May of last year it was around 34cpl. In the intervening time the cost of farm inputs has risen enoromously.

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