Kerry Co-op says it is returning to the arbitration process in an ongoing row with Kerry Group over leading milk price.
It follows a statement from Kerry Group that there are no outstanding payments due to suppliers.
Last week, discussions between Kerry Group and Kerry Co-op over a possible joint venture dairy deal were suspended; there's been calls from suppliers for the milk price issue to be resolved before any deal is done.
The Kerry Group milk supply contract states the “leading milk price on a like-for-like basis” will be paid after six differences with other co-ops are taken into account.
However, in 2015 a significant price gap opened between the four west Cork co-ops and other processors, including Kerry; this led to an ongoing row with suppliers, which was the subject of arbitration.
In a circular posted to milk suppliers this week, Kerry Group said the ruling of the arbitrator was that the west Cork co-ops should be treated as comparators for setting the milk price in 2015.
Kerry Group says the arbitrator didn't make any assessment if as a result of this the company owed milk suppliers any money for 2015.
Kerry Group says its position is that it is has paid the leading milk price on a like-for-like basis for milk supplied in 2015 and all subsequent years and no outstanding payments are due.
In response, Kerry Co-op says it is both disappointed and frustrated by this position, adding there has been an angry reaction from milk suppliers.
The co-op says it is very focused on the payment of outstanding monies up to 2020 and the payment of a top milk price into the future.
It says it is left with no other choice than to revert back to the arbitration process where Kerry Group needs to finally honour its commitment and bring this matter to a conclusion.
