It is unclear how many farmers have issued milk supply termination notices to Dairygold amid the growing row over changes to its loyalty scheme. Dairygold management admitted in communication to committee members last week that termination notices had already been lodged with the co-op as a result of the dispute.
It is unclear how many farmers have issued milk supply termination notices to Dairygold amid the growing row over changes to its loyalty scheme.
Dairygold management admitted in communication to committee members last week that termination notices had already been lodged with the co-op as a result of the dispute.
However, when asked by the Irish Farmers Journal this week how many termination notices had been lodged since the start of December, Dairygold failed to answer the question.
Dissatisfaction with the changes was outlined in a letter from disgruntled suppliers which was circulated last week and urged farmers to lodge termination notices in protest. Writing to committee members, Dairygold defended its decision to link the payment of full milk price bonuses to input purchases.
“Milk suppliers who trade with Dairygold’s agribusiness help contribute to the society’s overall business performance, which in turn helps to pay a competitive milk price and should be rewarded,” the management communication insisted.
However, this view is not shared by all Dairygold suppliers. “The two sides of the co-op – milk processing and input supply – should operate independently. The trading side must remain competitive,” the letter from disgruntled suppliers stated.
“Farmers need to be able to run their business efficiently and can only do this if they have the freedom to shop around for the best value and quality.
“Linking the milk price to input purchases compromises this freedom and undermines their ability to run their businesses effectively and profitably,” it added.
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