An interim agreement has been reached between Kerry Group and Kerry Co-op in relation to milk prices.
It’s been agreed that Kerry Group will make a goodwill payment of 3 cent per litre to milk suppliers.
The interim agreement relates to a dispute over the price Kerry Group paid to suppliers in 2015.
Under the interim agreement, Kerry Group will pay the goodwill payment in the middle of next month.
The amount will be calculated based on the average annual milk supplied for the years 2015 through to 2019.
This amount will include any additional payment arising from the milk supply contract made this year.
According to the joint statement from Kerry Group and Kerry Co-operative Creameries Limited, neither Kerry Group nor any milk supplier has waived rights as a result of this payment.
The joint statement adds that both parties view this agreement, which has been endorsed by the board of Kerry Co-op, as an important first step which allows for discussion on a future long-term sustainable relationship.