Hundreds of dairy farmers will today hold a protest meeting at the headquarters of the Kerry Group in Tralee over the company's decision to cut the price it pays farmers for milk.
The company announced last week that it would cut its milk price by 1.32c per litre (6c per gallon) from January 1st. This is the latest round of producer price cuts announced by the major Irish milk-processing companies and it has incensed dairy farmers.
The company, one of the flagships of the Irish dairy industry, last week announced a fall of €5.7 million in pre-tax profits in the first half of this year.
It blamed higher energy costs across all its operations, falling food prices and difficult international trading conditions.
The Irish Farmers' Association has organised the protest, and its national dairy committee chairman Richard Kennedy has urged all milk suppliers of Kerry Group to show their anger.
He said the price cuts implemented and signalled by Kerry since June for 2006 and 2007 would reduce the average supplier's annual income by €6,000.
"Kerry Group has a proud tradition of paying strong milk prices and showing solid support to their suppliers. This huge price cut, in addition to that already implemented in 2006, is a major sea change by Kerry, and a serious let-down for all suppliers to the Kerry Group," he said
"For the suppliers to the Kerry Group, who have always shown huge loyalty to their milk purchaser, this is a devastating blow at a time of unprecedented income pressure."
He said as a successful diversified plc, Kerry should be in a far better position than other milk processors to support its suppliers in difficult times.