Dairygold revises its year-end milk payment policy after supplier backlash, removing the link between milk price top-ups and supplier trading volumes.
Dairygold, one of Ireland’s leading dairy co-operatives, has announced a major revision to its year-end milk payment policy following strong opposition from suppliers and industry stakeholders. The company, headquartered in Cork, is a farmer-owned cooperative specializing in dairy processing and agribusiness, serving both domestic and international markets.
The key change involves the removal of the controversial link between milk price top-ups and supplier trading volumes with the co-op. Initially, the payment structure required suppliers to meet a 6c/l trading threshold to qualify for additional bonuses. However, after widespread criticism, Dairygold has eliminated this requirement, allowing suppliers to benefit without restrictive purchasing conditions.
The decision follows extensive consultations with regional committees and focus groups, which voiced concerns about the fairness of tying milk price bonuses to input purchases. In response, the Dairygold board amended its payment mechanism to provide more flexibility while still maintaining a “year-end trading payment” for eligible suppliers.
Dairygold Chair Pat Clancy emphasized the cooperative’s commitment to ensuring competitive milk and grain prices while keeping input costs manageable. He acknowledged that while the loyalty reward program was initially designed to benefit active traders, feedback from suppliers necessitated a strategic reassessment.
The initial update aimed to enhance rewards for those actively trading. However, after engaging with our members and stakeholders, we recognized the need to adjust the program to address their concerns.”
Pat Clancy, Dairygold Chaiman
Since its introduction in 2015, Dairygold’s Loyalty Reward Scheme has distributed €21 million in shares and cash to its members and customers. The revised policy highlights the cooperative’s responsiveness to supplier feedback and its focus on fostering strong business relationships without imposing restrictive trading conditions.
The adjustment marks a significant shift in Dairygold’s approach, aligning with industry expectations and reinforcing its position as a farmer-focused cooperative. As the dairy sector faces evolving challenges, the company aims to maintain trust and transparency with its supplier network while supporting long-term business sustainability.
