Dairygold is to consider a rule change which would enable the co-op to go outside its catchment area to take on new groups of milk suppliers, a number of committee members have told the Irish Farmers Journal. The possible rule change is to be discussed by Dairygold’s general committee and is part of a wider review of the co-op’s rules.

If the rule change is approved by the general committee, the proposal would then be put to Dairygold shareholders at a special general meeting later this year.

In a statement to the Irish Farmers Journal, Dairygold played down the significance of the move, saying that the co-op “carries out periodic reviews of the society’s rule book” and that “no rule amendments have been proposed or agreed”.

The co-op said the rules review was considering five subject areas: diversity, board and committee, share related, milk related and housekeeping.

A sharp drop in milk volumes over the last two years has hit all the main dairy processors, with milk intakes for 2024 forecast to drop by 600m litres or 7% compared to 2022.

Milk supplies

The Dairygold review comes as competition for milk supplies looks set to intensify due to the reduced output.

The continuing uncertainty around Tipperary Co-op and the establishment of a producer group by suppliers at Kerry Group’s Kerry Dairy Ireland division has added to dairy sector tensions in Munster.

Meanwhile, Dairygold is to carry out a supplier census for the 2025-2030 period in September. It will look at farm structures, supplier age profiles, land availability, forecast milk supply over the next five years and succession.

The result of the census will “lay the foundations for Dairygold’s strategic milk operations and commercial planning” for the five-year period, the co-op said.