said it's not obliged to collect milk from suppliers after 4 August if they have not signed the Milk Supply and Purchase Agreement
This is the case even if the suppliers are shareholders of Kerry Co-Operative Creameries Limited.
That's according to an IFA synopsis of clarifications it received from Kinisla management on the new contract following concerns raised by farmers.
The deadline for signing the new contract is the 4th of August.
Concerns were raised at two IFA dairy meetings in Tralee and Limerick earlier this month, after which a Kerry IFA delegation met Kinisla management.
Kinisla clarified that if a milk supplier permanently ceases milk production and terminates their agreement under Clause 9.3, the agreement ends.
The supplier is then free to sell or lease their farm, and the Milk Supply and Purchase Agreement does not continue to bind the farm, its new owner or a lessee.
Different provisions apply where a Milk Production Enterprise is consolidated, assigned or transferred while the agreement remains in force under Clause 11.
For the purposes of Clause 9.3, "permanently cease" means the legal person who entered into the agreement permanently stops producing milk in their Milk Production Enterprise.
Kinisla confirmed that Kerry Creameries Limited (KCL) does not have B shareholders.
KCL is a wholly owned subsidiary of Kinisla, and shareholders or members of Kerry Co-Operative Creameries Limited are not shareholders or members of KCL.
The audited annual accounts of Kerry Co-Operative Creameries Limited for the year ended 31 December 2025 will be published online before the 4 August 2026 signing deadline.
The statement says Kinisla’s financial results are included within KCC’s consolidated financial statements, as Kinisla is classified as a general business.
Kinisla said Clause 14.1 does not give Kerry Creameries Limited the right to enter a supplier’s private dwelling house.
The clause applies only to the Milk Production Enterprise.
KCL said it may carry out reasonable inspections or audits where necessary to verify compliance with food safety standards, with any inspections undertaken only in exceptional circumstances and for legitimate animal welfare or food safety purposes.
Kinisla clarified its corporate structure and the entities referenced in the Milk Supply and Purchase Agreement.
Kinisla Group Limited is the holding company of the Kinisla dairy business and is 70% owned by Kerry Co-Operative Creameries Limited.
Kerry Creameries Limited is a wholly owned subsidiary of Kinisla, is the contracting entity responsible for purchasing raw milk under the agreement, and was also the contracting party under the previous milk supply agreement.
Kerry IFA Dairy Chairman Owen O'Sullivan says changes to the contract won't affect the majority of suppliers:
