DEAR SIR: I’m writing to you with dismay at Arrabawn Co-op pulling out of the KPMG milk audit. As far as dairy farmers are concerned we use the KPMG milk audit to keep us informed as to how our dairy industry is performing and use its findings to keep co-op’s management and boards on their toes. If the chair of Arrabawn, as outlined in a letter to its suppliers, has evidence or proof that some milk processors are using liquid premium to incorrectly inflate its manufacturing milk price, then he should come out with it so that it can be investigated to uphold the integrity of the audit or otherwise. I understand that some milk processors pay a winter bonus and early plus late bonuses, but this milk is still used in manufacturing and knowing the value of these bonuses, farmers can make up their own minds whether to produce milk off the shoulders.

I don’t think liquid milk bonuses should be included in manufacturing milk pricing in the audit as about 14% of Arrabawn suppliers are liquid, leaving the remainder of its suppliers getting manufacturing price and this is the guideline that the audit is based on.

As a former liquid supplier to Arrabawn, I understand the liquid business and compliment all who work in it but it is a standalone milk industry, governed by the National Milk Agency with individual liquid contracts of six, five and four months and putting this data on the printed press would leave the liquid suppliers vulnerable to scrutiny by the retailers and supermarkets.

If Arrabawn can’t move out of the bottom of the audit then questions should be asked of the performance of the CEO, the management, the board and the chair. If Arrabawn pulls out instead of moving up the audit, then we, the suppliers, have bigger questions to ask of the CEO and chair.