Dairygold to drop controversial trading link to milk price

Dairygold is to scrap the proposed link between year-end milk price payments and suppliers’ level of trading with the co-op, the Irish Farmers Journal understands.

The about-turn comes following a turbulent period during which the co-op was criticised for linking input purchases with milk price top-ups, and for its milk price in comparison to other milk processors.

A document, seen by the Irish Farmers Journal, says that following consultations with its regional committees, the Dairygold board has “decided to amend its mechanism” for awarding end of year milk payments.

Suppliers may be eligible for ‘year-end trading payment’ but year-end milk payments will not be linked to their level of trading with the co-op, and the proposed 6c/l threshold will not now apply.

Loyalty Reward Scheme

In a statement issued on Thursday night, Dairygold chair Pat Clancy said: “Dairygold is committed to its everyday goal of maximising members’ income, through ensuring the society pays the strongest possible milk and grain prices and minimising their input costs. Dairygold has a policy of rewarding members who actively trade with the society, thus helping to support the overall business performance.

"The focus of the initial updated scheme was to increase the rewards we pay to those actively trading. However, when it became apparent that members were concerned over the change, which links potential year-end milk payments to the level of purchases, we re-engaged with our regional committees, focus groups and members. Following this consultation, the board decided to amend the scheme.”

The Loyalty Reward Scheme has seen €21m paid to Dairygold members and customers in shares and cash since it was first introduced in 2015.

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