The controversy over the proposed Dairygold trading scheme has blown up over the last two weeks, so the Irish Farmers Journal looked to what other processors are doing to encourage suppliers to trade more with their co-op.
Paying extra for milk to suppliers who do a level of trade with their co-op still prevails among smallerco-ops. For example, Drinagh Co-op in Co Cork pays a 1c/l bonus on milk where purchases are greater than 10c per litre supplied.
This drops to 0.5c/l for purchases amounting to between 8c/l and 10c/l supplied, falling to zero when the total of purchases drops below 8c.
Total payments under the scheme amounted to €2m in 2023. With Drinagh’s milk purchases in the year at just over 210m litres, the payment suggests that almost all suppliers qualified for the full 1c/l bonus.
The Irish Farmers Journal understands that the other west Cork co-ops have similar schemes in place.
Larger processors have faced farmer resistance in the past when tying purchases to the milk price.
In 2013 Lakeland announced that it would dock suppliers 1c/l for not buying their dairy feed requirements from the processor. The decision, which led to angry farmer meetings and threats of a boycott, was quickly reversed in the face of overwhelming opposition.