Dairy farmers consider Dairygold’s new milk pricing system ‘workable’

NORTH Cork dairy farmers are broadly happy that they can meet the calving and production guidelines in Dairygold’s new milk pricing system, it emerged at an IFA-hosted meeting in Mallow last night.

While around 400 of the Co-op’s 3,000 suppliers will probably choose Dairygold’s opt-out mode of a price based on an average of the last three years, the vast majority believe the new system is workable.

Looking ahead to the 2015 post-quota era, the co-op will attempt to control investment in new processing equipment by spreading milk production into traditionally weaker months.

New approaches to the “shouldering” of milk production outside of traditional peaks, and new calving management systems were explained last night by Laurence Shalloo of Teagasc.

Dairygold’s Tim Healy and Eamon O’Sullivan explained the new pricing system, while Catherine Lascurettes gave the IFA’s view on proceedings.

Chairman of the North Cork IFA dairy committee, Sean O’Leary, said: “There will continue to be some difficulty in people trying to match oversupply while we are still in a quota system, but most people can see that this Dairygold plan is achievable.

“Glanbia have introduced a contract system based on 16% production in May and June, which is tougher to achieve. In general, you can’t really fault where the Dairygold plan is heading.

North Cork’s IFA members were also generally receptive towards the need to reduce the numbers of late-calving cows. The expectation is that most farmers will be able to rework their breeding strategy towards closing off calving in the last week in January.

IFA Cork development officer, Sean Clarke, said: “Dairygold wants to change the supply pattern. The bulk of herds are already spring calving. Those who are late-calving will have an opportunity to change, because there will be a lot of replacements available.

“Farmers understand that this is geared towards avoiding any heavy investment in processing facilities. The co-ops don’t want to spend a huge amount of money for a short spike in production.”

Some of the debate last night focused on the balance which Dairygold may have to strike between incentives for those who manage to conform to the new milk pricing system, plus penalties for those who don’t.

However, the tone became more angry when the debate moved onto discussion of CAP reform.

The North Cork members added their disquiet to the resistance already expressed by the IFA, in areas such as proposed abandonment of the Single Farm Payment and new ‘greening’ proposals.