Kerry Creameries has announced a leading milk price payment for 2024, confirming it will pay an additional 0.88c/L.

This figure includes VAT and is based on average milk solids supplied to the processor.

The agreement followed consultation with the board of Kerry Co-op.

The payment will be made on milk solids under the milk supply contract in 2024, but excludes milk supplied under forward price schemes.

According to Kerry, the total payment amounts to over to €10 million.

A statement from Kerry this afternoon (Friday, April 11) said: "Kerry Creameries Limited, following consultation with the Board of Kerry Co-Operative Creameries Limited, will pay an additional 0.88 cent per litre (VAT inclusive, at Kerry average solids) on milk solids supplied under the Milk Supply Contract in 2024, excluding milk solids supplied under Forward Price Schemes.

"The total additional payment to milk suppliers amounts to €10.3 million," the statement added.

This is the first annual leading milk price payment since the finalisation of the first phase of the deal in which Kerry Co-op buys Kerry Group’s dairy business, Kerry Dairy Ireland, for €500 million.

As part of that deal, a €50 million fund was offered by Kerry Group to resolve the outstanding leading milk price dispute which has been subject of long-running arbitration.

That €50 million fund will involve a cumulative payment of 5.4c/L to suppliers for the years from 2015 to 2020, as per their milk supply contract.

Payments under the 'Milk Supply Agreement Fund' have already begun, Kerry Dairy Ireland confirmed in February.

The leading milk price payment has been a source of significant contention among Kerry suppliers for many years.

Most recently, suppliers of Kerry Dairy Ireland who are members of the Munster Dairy Producer Organisation (MDPO) called for both the milk processor and Kerry Co-op to ensure the leading milk price payment for 2024 is “fully honoured”.

The MDPO was set up last summer due to what interim chairperson James Doyle said was “desperation, frustration and a lack of representation”.

The vast majority of the MDPO’s members are suppliers of milk to Kerry Dairy Ireland, the milk processing division of Kerry Group.

A MDPO message circulated among members of that producer group last month claimed that suppliers are owed a top-up of 1.45c/L for milk supplied in 2024, based on payments received by suppliers of other processors and co-ops.

Kerry Dairy Ireland had not, at that point, made any comment on how much would be paid for the 2024 leading milk price.