A number of Kerry Group dairy farmers have been granted official Producer Organisation status.
The Department of Agriculture has approved the Munster Dairy Producer Organisation (MDPO), the second such body in the country.
European legislation allows farmers to join together to form Producer Organisations (POs), which can negotiate contracts and prices for the whole group.
The government says POs will build resilience and competitiveness within the agricultural sector, while strengthening the position of farmers in the supply chain.
The Munster Dairy Producer Organisation is made up of milk suppliers farming in Kerry, Limerick and Clare, who were disappointed at the milk price being paid by Kerry Group compared to other milk processors.