IFA delegation assured Dairygold is in a ‘healthy financial position’

DAIRYGOLD chairman Vincent Buckley has told the IFA the company is in a healthy financial position.

Yesterday, IFA dairy chairman Richard Kennedy and Munster vice-president Sean O’Leary described a meeting a delegation from the IFA National Dairy Committee had with the board of Dairygold Co-op on Thursday night.

Mr Kennedy said: “Our delegation was assured by the chairman of the board that Dairygold is in a healthy financial condition.

“Dairygold must now reassure their supplier shareholders, who have interpreted the premature price cut as a signal that all is not well.

“Dairygold must also show that they are sharing the pain with their suppliers, whose average milk receipts are down a massive €29,000 in the last 12 months.

“They can do so by communicating clearly to their members a business plan, including major cost cutting, which will secure a vibrant future for the co-op and its suppliers,” he advised.

The IFA has expressed the shock and anger of Dairygold suppliers at the premature milk price decision made by the board to cut the March milk price to 20c/l and requested that the board reconsider this decision at its next meeting.

Mr Kennedy said we now live in a deflationary environment, with energy costs and all charges and fees coming down, as our economy can no longer afford high prices.

“Dairygold and all other co-ops must use this new environment to find necessary new savings at every level of the society: milk collection, milk testing, processing, administration, marketing, director fees, payroll, and joint cost-cutting projects with other societies.”