This week in the Irish Farmers Journal, we reported on some of the issues and proposals emanating from the Kingdom, as the farmers and PLC discuss a future relationship.

Following publication of the articles this week and talking to farmers since, many just did not realise how the structure had evolved to where it is now.

Divisions

So, essentially, you have a very successful global ingredients company, which is also a large processor of milk - making powders and cheese. The division where the milk sits in Kerry is called Kerry Agribusiness. The other two pillars are Kerry and Kerry Foods.

Turnover at Kerry Agribusiness is between €600m and €700m and it makes a profit margin of 2% to 3%. Its main plants are Listowel, Charlville and Newmarket.

Milk supply is in the region of 1.2 billion litres of milk, slightly behind Dairygold and Glanbia, as they haven’t had the same expansion in the Kerry catchment compared with the south and east.

The number of farmers on the board of Kerry plc has reduced down the years as the shareholding has been reduced

Kerry Group owns the milk processing, agribusiness and pays the milk suppliers. The number of farmers on the board of Kerry PLC has reduced down through the years as the shareholding has been reduced.

There are two farmers still on the PLC board - Gerard Culligan and Con Murphy. Philip Toomey is chair of the PLC board and is an independent non-executive director.

Kerry Co-op is a holding company, with a farmer board and essentially is not trading. This co-op, or creameries board as some know it, doesn’t set milk price.

However, it does manage the funds in the co-op that has grown as the share price in Kerry PLC has grown.

Remember, the co-op has a 13% share holding. It’s big money when the share price is over €100.

The co-op manages the relationship with the PLC, as it is the representative structure of the farmers. This group is chaired by Mundy Hayes.

See next week's Irish Farmers Journal for more on what might or might not happen in Kerry. Will the farmers take an ownership stake in Kerry agribusiness?

Before you go to those articles, test yourself

Who owns Kerrygold?

The iconic brand of butter does not belong to Kerry Group. Kerrygold is the flagship brand of Ornua, formerly the Irish Dairy Board.

Who makes Dairygold butter spreads?

The Kerry Group. Many of the Dairygold brands were purchased by Kerry.

Does Kerry do liquid milk?

No, Kerry moved out of liquid milk space, so it no longer competes on this in Ireland. Glanbia now has most of the Kerry liquid milk pool.

Read more

Divisions emerge within Kerry Co-op board over negotiations with plc

A new Kerry model - what will it mean for farmers?

Crunch talks for future of Kerry Co-op and Kerry Group