Following supplier meetings in Limerick and Tralee earlier this month, organised by the IFA, a delegation from the organisation met with Kinisla management to get answers about the new milk contract.

Kinisla said that it is not obliged to collect milk from any supplier who has not signed the Milk Supply and Purchase Agreement by 4 August, even if the supplier is a member of Kerry Co-op.

This was outlined in the cover letter sent to suppliers with the new contract.

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The milk supply agreement gives Kinisla the right to enter a supplier’s premises.

Kinisla clarified that the word “premises” does not include a supplier’s private dwelling house and that the clause in the contract applies solely to the milk production enterprise.

Reasonable inspections

It said that, similar to other dairy processors, it reserves the right to “carry out reasonable inspections and audits” where necessary to verify compliance with requirements of applicable standards.

Kinisla added that any inspection or audit under the contract would be carried out exceptionally, and “for legitimate animal welfare or food safety purposes”.

In response to calls for Kinisla to publish a full set of accounts ahead of the deadline, the processor told the IFA that “audited annual accounts of Kerry Co-Operative Creameries Limited (KCC) for the year ended on 31 December 2025 will be available online before 4 August 2026. Classified as General Business, Kinisla’s financial results are included within the consolidated financial statements of KCC”.

The Irish Farmers Journal has contacted Kinisla for clarification as to whether this will amount to a full set of 2025 accounts for Kinisla.

Kinisla also clarified that the milk supply contract is tied to the legal person who enters into the agreement, and if that person permanently stops producing milk and terminates their agreement under clause 9.3 of the contract, then their agreement comes to an end.

They are then free to sell or lease their farm without the land, new owners or lessee bound to any supply agreement with Kinisla. Different provisions apply in the cases where a milk production enterprise is consolidated, assigned or transferred while the supply agreement remains in force.

Explanation of entities

Finally, an explanation of the entities involved in the contract was given. The supply agreement is between the milk producer and Kerry Creameries Limited, which is a wholly owned subsidiary of Kinisla and is the contracting entity responsible for the purchase of raw milk. Kerry Creameries Limited was also the contracting entity for the previous milk supply contract.

While there is little financial information available for 2025 for most of the Kinisla entities, full accounts for 2025 for Kerry Creameries Limited were published earlier this month which showed a profit-after-tax of €6m. The company’s profit and loss account showed €657.5m revenue.

It paid €639m for raw materials and consumables (milk from suppliers), had wage costs of €3.5m and “other external charges” of €6.5m. The financial performance in 2025 was a significant improvement from the previous year where a loss-after-tax of €43m was recorded. The years 2022 and 2023 saw profits-after-tax of €3.5m and €5m respectively.