Kerry is the big story among the dairy industry in Ireland at the moment.

The race was nearly run before it started prior to Christmas, but this week it gathered pace as we were told it’s only half way around the track.

Last year the dairy story was the Lakeland Dairies and the LacPatrick Co-op move. The story of the previous years was the huge farmer investment in Dairygold and Glanbia. This year, it’s Kerry.

Control

Will the Kerry farmers be able to afford to take back some ownership and control of the milk processing investments already made in Kerry?

While we have been writing about Kerry and many of the various disagreements between the Kerry milk suppliers and Kerry Group for almost 10 years, this proposed deal could bring all these issues to a head and clear them up if done properly.

However, we still don’t know the detail. There has been much speculation to whet the appetite, but, until we get clear guidelines, a line of sight for what’s on offer, it remains just speculation.

Frustration

Recent IFA meetings encapsulated some of that frustration among farmers on the speculation.

The background is a dispute over milk price. Mix that with a dearth of specific information and there is ground to make up.

Essentially, this means if this proposed joint venture is to take shape, both sides will have to come out with a clear message on why, what and when this proposal should happen.

If the Kerry milk suppliers believe it is the right thing to do and it makes sense, then you would expect it will work.

Of course the other shareholders at the table are important and, when developing a deal like this, you need to consider other affected parties.

Milk price

So we hear the milk price piece might be near agreement. If it is, good, and both sides must move on and take the lessons.

The bickering between both sides must turn positive if this deal is to have any chance.

Of course, I’m sure there are co-op board members on both sides of this proposal, but, if decisions are made then like any board surely you have the arguments inside and go to the country as one.

The blinkers must be on with the finish line coming into view.

At this stage it’s clear there is a pathway but the path can twist and turn as we all know. Listen to our latest podcast to get up to speed.

Read more

Podcast: Kerry Co-op and Kerry Group JV talks have a long way to go

Kerry Group sheds some light on joint venture talks with Kerry Co-op