Dairygold Co-op has announced a U-turn on fixed milk price compensation and has started compensating those farmers caught on lower fixed milk prices.

Two of the milk prices in the Dairygold fixed schemes will increase by 6.25c/l and 5.75c/l, respectively, and brings the ‘fixed’ price over 40c/l.

The move will cost Dairygold Co-op between €4m and €5m. The west Cork co-ops have also announced increased support. Suppliers will get an additional 2c/l for June to further top up lower fixed milk prices that had already got a 5c/l top-up. The moves come as Ornua further improved on support it was already providing to member co-ops.

At a June Oireachtas hearing, Ornua CEO John Jordan outlined that all farmers are implicated, as the cost of Ornua’s support for those in fixed milk schemes will impact Ornua’s annual results and the overall amount of Ornua’s 2022 value payment.

It looks as if further board pressure was applied in the wake of this Oireachtas appearance.

On the latest additional support, Ornua declined to answer how much extra it was offering member co-ops.

The last time it stated the Ornua money could be managed by the member co-op in whatever manner it deemed most appropriate for its situation.

It equated to 10c/l on 10% of the volume or 1c/l on all of the volume.

The Irish Farmers Journal understands that Ornua had funds to meet this additional request because it hadn’t actually contracted some of the fixed milk pool back to customers.

Subsequent higher market prices for product created a transaction profit, which it seems is being shared with member co-ops. When contacted this week, Ornua would not comment on the extent of the additional funds or how it would fund it.

It suggested that the offer demonstrates Ornua’s continued empathy and support to those most in need of financial relief at this time.

Northern Ireland

In Northern Ireland, Dale Farm has not moved on any fixed milk adjustment. Lakeland has an 8c/l supplementary payment in the Republic and 7p/l for NI suppliers.

North Cork Co-op has offered revised contracts to its milk suppliers who are tied into fixed-milk-price schemes. The co-op has offered a 10c/l top-up for milk supplied in 2022 on 75% of fixed milk. This again takes the price over 40c/l provided they lock in a volume for 2023.

No further updates were available from Glanbia on its initiatives.

Aurivo previously announced a 5c/l and a 3.5c/l upward adjustment on two schemes.