Milk suppliers in Lee Strand are getting fidgety because chief executive John Sullivan has still not paid out the final 1c/l for the flexi milk quota, which the co-op leased out to West Cork suppliers in 2015.
It was leased to a small number of in-the-know suppliers in Lisavaird and Barryroe, allowing them to reduce or even avoid the superlevy. Ordinary suppliers in these co-ops only learned about it via The Dealer.
But it was also a surprise to Lee Strand suppliers to learn that their co-op has leased out the quota for close to 10c/l – while offering them as little as 1c/l for it. “Management used tell us there was no demand for our quota, that they were doing us a favour taking it in,” one supplier told The Dealer. “But there was demand.”
The suppliers kicked up and were eventually promised another 1c payment on the quota, to keep them quiet. However, while they have received their original price for the quota, there has been no sign of the 1c sweetener. Board members raised the issue with Sullivan, who told them it would be paid out “shortly”.
Lee Strand has a whopping €38m debt on its balance sheet, which will cost it about €1m to service in 2016. However, the 1c/l sweetener for the 2015 flexi milk will cost at most about €10,000.