Dairygold extends milk supply sign-up deadline

Dairygold has extended the sign-up deadline for its milk supply agreement until the end of April to facilitate a special general meeting on Apr 11.

The SGM will take place immediately after the co- op’s AGM on the same day. The SGM has been sought by a group of around 270 suppliers opposed to aspects of the supply agreement.

The co-op says 80% of its near 3,000 suppliers have now signed up.

The Dairygold Milk Suppliers and Shareholders Group (DMSSG) says it welcomes Dairygold’s decision to host the SGM and to extend the sign-up deadline.

A spokesperson for the group said: “We feel that all signing activities should also be suspended until after the SGM’s decision on the 11th of April.”

Dairygold also said yesterday that its board had been given unequivocal support for its post-quota plan at a meeting of the 175 members of its regional committees.

Dairygold said: “In a number of speeches from the floor, the elected members gave a ringing endorsement of the Dairygold plan.

“Committee members were informed that 80% of milk suppliers have now signed Dairygold’s supply agreement and the co-op was confident that its post quota plan has the full support and backing of the majority of its farming members.”

The co-op’s regional committee members also described as “misleading” the information which has been issued by the group opposed to Dairygold’s post-quota plan.

The committee defended the accuracy of supplier surveys carried out last year, indicating a milk growth rate of 55% to 60% on the 2011 base volumes.

These figures, they said, are consistent with previous surveys, and have been confirmed through cross-referencing with ICBF data on Dairygold herds.

They also rejected as inaccurate cost comparisons made by DMSSG between Dairygold’s proposed milk driers in Mallow and those being installed on a Fonterra greenfield site in New Zealand.

DMSSG had cited a cost of €40m for the New Zealand installation. Dairygold says this only refers to part of an overall €125m investment.

“Dairygold’s investment in Mallow of €105m for two 7½ tonne-per-hour dryers is totally justifiable. The Dairygold figures have been verified by independent experts and are lower (due to brown field development) than the figures being quoted by other processors,” the regional committee stated.

Dairygold chief executive Jim Woulfe said: “We readily acknowledge and accept that our strategy cannot meet the precise needs and circumstances of every individual member, but the role of the society is to act in the best interests of all members and not any particular group of members.”