Milk buyers operating in Northern Ireland have become well accustomed to producers switching their supplies to a different milk buyer over the past 20 years, since deregulation of milk marketing there.

Over that period, Town of Monaghan, Lakeland Dairies, Glanbia and Donegal Creameries (now Aurivo Co-op) have been active in recruiting suppliers. Members of United Dairy Farmers have been the main targets, as the southern-based operations generally don’t bid against each other.

United has supply contracts with penalties applicable for any member who quits with less than 12 months notice, so some members give notice annually even if they don’t have an immediate interest in moving away from United. But some have gone without notice and with their new milk buyer rumoured to be paying the ‘‘fine’ (6c of previous 12 months’ milk income for no-notice departure – Table 1).

April

The beginning of April is one of the main departure times and last week saw around 30 producers leave United. Most of these switched to Lakeland or Town of Monaghan, with the latter understood to be picking up new suppliers with around 20m litres of annual production. This includes a few million litres from the family of a former vice-chair of United in Co Antrim.

Lakeland is believed to have added around 15 new suppliers and Aurivo has also had some notable success.

Glanbia, including Glanbia Cheese, is understood to have added close to 10 new suppliers. Strathroy has added one new supplier in Co Antrim, a large volume conveniently located to other Strathroy suppliers.

With a much lower penalty (2%) payable when members give six months notice of withdrawal from their United milk supply contract, and given the current depressed market, it’s believed that southern-based buyers have lined up other potential signings to begin supplying milk at the end of September.