Suppliers of Kerry Dairy Ireland who are members of the Munster Dairy Producer Organisation (MDPO) have 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 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.

This top-up is also referred to by suppliers as the 13^th payment.

It should be noted that Kerry Dairy Ireland has not, as of yet, confirmed how much will be paid.

The message circulated among MDPO members said: "The board of Kerry Co-op and [Kerry Dairy Ireland] must ensure the contract is fully honoured, paid on all milk supplied."

The message said that the €50 million fund to pay a cumulative leading milk price to cover the years 2015-2020 was not based on all milk supplied, which the message said would be "unacceptable for 2024".

That fund was agreed as part of the joint venture in which Kerry Co-op takes ownership of Kerry Dairy Ireland.

However, this fund has proven controversial among suppliers as it is paid on contracted volumes rather than all volumes supplied.

Some suppliers have also expressed dissatisfaction that the payment is inclusive of VAT, with the MDPO previously claiming that the actual fund amounts to €47.57 million.

The message also claimed that "there were cast-iron guarantees" given by the board of Kerry Co-op, during information meetings on the joint venture held in December, that the 13^th payment would be honoured.

The MDPO message said: "If the whole [joint venture] process is to have any shred of credibility it is now the duty of the co-op to ensure that the assurance it gave three months ago is not reneged upon and that the 1.45c/L that is due to milk suppliers is paid in full."

The message also called on members of the MDPO to contact their local member of the Kerry Co-op board to "ensure this is delivered".

Agriland has contacted Kerry Dairy Ireland for comment on the leading milk price payment for 2024.

Speaking to Agriland, MDPO chairperson Doyle said: "We have a job to do to protect our milk suppliers... We are still owed money, and figures have been [done] up and what we are actually owned is 1.45c/L.

"My message is that milk suppliers should be contacting their local representatives, their board members, that are on the board of Kerry Co-op and to ensure that this money is paid out to all milk suppliers on all milk, and not like what we got in the compromise of the €50 million for the years 2015 to 2020, only paid out on contracted milk," Doyle added.