Kerry Co-op looks set to ask farmer milk suppliers to contribute up to €180m to help fund its proposed joint venture investment in Kerry Group’s primary dairy business.

Speculation in the Kingdom over recent days suggests Kerry Co-op is considering a number of options of how farmer milk suppliers could contribute funding to the joint venture.

These options include a requirement to “share-up” in the new joint venture, setting aside a portion of the leading milk price settlement or a contribution from farmers to a revolving fund.

The average Kerry milk supplier is likely to have to contribute between €45,000 and €70,000 to the joint venture over a 10-year period, depending on the funding required. Despite the continued speculation, board directors in Kerry Co-op have confirmed to the Irish Farmers Journal that no details on farmer funding options have been signed off. The directors said they wanted to see a clear business plan for the joint venture from Kerry Co-op and Kerry Group before agreeing to any farmer funding options.