Farmers will gather at Kerry Group on Prince’s Street in Tralee this morning.
Kerry Group suppliers are “continuing the campaign” for an increased milk price this morning as they are set to protest in Co Kerry.
In June, up to 500 dairy farmers gathered outside Kerry’s buildings in Charleville, Co Cork, to protest at what they say is the “ridiculous” price being paid to farmers for milk.
For May milk supplies, Kerry 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.
Farmers are calling for an increase in milk price, as the current price is “now 3c per litre behind” what is being paid by neighbouring processors.
Processors will begin to announce their prices for June supplies in the coming days.
Farmers will gather at Kerry Group on Prince’s Street in Tralee this morning to “continue the campaign that we started”.
This morning’s event is expected to be similar to that in Charleville, but with fewer farmers attending – a “peaceful protest” and the handing in of a letter to management containing key demands from suppliers.
The two-page letter that was submitted to management in Charleville recently 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.
Farmers want the 3c difference in milk price “to be reimbursed to us as soon as possible and we need Kerry to lead from the front rather than behind”.
Kerry supplier Kieran Clifford from Beaufort, Co Kerry, who is one of the protest’s organisers, said that there has not been movement on the issue since the protest in Charleville, and “we’re not going away until we get what we’re entitled to”.
He told the Irish Examiner that the price suppliers are receiving “is not sustainable, and I think that it would be a mistake for Kerry to take our milk for granted”.
Substantial drop
The protest in Charleville had been supported by Kerry Co-op, along with farm organisations.
Irish Farmers’ Association president Tim Cullinan told the Irish Examiner that it was “very important” for farmers to turn out for the 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.”
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”.
A Kerry Group spokesperson told the Irish Examiner that “global dairy markets remain pressurised as we move into the second half of 2023”.
“Kerry continues to monitor dairy market returns and remains fully committed to its contractual agreement to pay a like-for-like leading milk price,” they added.
