Arbitration case between Kerry Co-op and Kerry Group begins

An arbitration case at the High Court relating to a dispute between Kerry Group and Kerry Co-op has started in Dublin.

The dispute, which originated in 2015, centres on the comparisons of prices paid by other milk processors and what Kerry pays its 3,300 milk suppliers.

Under a milk supply contract signed by suppliers, Kerry committed to paying a leading milk price on a ‘like-for-like basis’.

As a result of this, 13 payments had to be issued in order to comply with the agreement.

Kerry Group made an offer to resolve the dispute last year by offering a payment of 1.75 cent per litre for 2017 supplies; however this was rejected.

The case could take up to 5 days.