Kerry Co-op has moved to suspend an upcoming share-up collection, which would have seen suppliers contribute a total of 5c/L of milk supplied.

The decision is being taken as a result of downward pressure on milk prices to suppliers, the co-op said.

The board of Kerry Co-operative Creameries has confirmed its decision to suspend the proposed 2026 share-up collection following a "review" of current market and financial conditions.

The share-up, which was due to commence in April, would have required milk suppliers of Kerry Dairy Ireland to contribute 1c/L on milk supplied until a total of 5c/L of milk supplied was reached.

However, due the low milk prices, the board decided that going ahead with the share-up would have compounded the financial pressure on suppliers, Kerry Co-op said.

In a statement, the business said: "In light of milk prices currently running well below the cost of production, the board concluded that proceeding at this time would place undue pressure on suppliers facing significant financial strain."

The co-op said that the decision to suspend the share-up is provided for under its governing framework.

"Exercising its discretion under the co-operative's governing framework, the board unanimously agreed to suspend the collection to prioritise supplier sustainability," the statement said.

Kerry Co-op said its decision to suspend the collection will be kept under review and will be updated in line with market developments.

Kerry Dairy Ireland

The most recent milk price announcement from Kerry Dairy Ireland, in which Kerry Co-op has a majority share, came with a "base price top up".

The processor said that its milk price for January supplies will be 37.5c/L, including VAT, the base price top up, and quality and sustainability bonuses.

This compares to a milk price of 34.5c/L that was announced in January for December supplies.

The 3c/L top up will bring the January milk price back to the same level as the milk price for November supplies, before it was cut by 3c/L for December milk.

The processor said at the time of the milk price announcement that dairy commodity markets have stabilised in recent weeks, finding a floor "despite continued strong milk supply, with volumes across major exporting regions still exceeding earlier projections".