The average Kerry milk supplier is in line for a €10,000 milk price top-up after an interim agreement was reached on the discussions over the “leading” milk price.

Kerry Group is to make a goodwill payment of 3c/l based on annual average supply for 2015 to 2019 inclusive.

Irish Farmers Journal analysis shows this will cost Kerry Group in the region of €33m, with cheques to be sent out to farmers next month.

Volumes are also adjusted for milk in fixed milk price schemes, which are excluded from this top-up

We understand that Kerry Group is currently adjusting numbers to get the exact amount owed to allow for farmers who have exited and entered milk.

Our analysis reviews milk supplies for the last five years, assuming 3,100 milk suppliers, and an average 80-cow herd.

Volumes are also adjusted for milk in fixed milk price schemes, which are excluded from this top-up.

It is estimated the amount owed per supplier works out in the region of €10,700 or €126 per cow.

Both sides have reserved their positions should the ongoing negotiations break down, and both sides potentially have to return to arbitration.