Dairygold milk agreement ‘absolutely required’

Dairygold Co-op has said a milk supply agreement and forecasting of future supply are “absolutely required” from each milk supplier — and suppliers who do not comply run the risk from 2015 onwards of being paid less for any milk over and above their 2012 supply volume.

However, the co-op has dropped a 2 cent per litre penalty on suppliers who do not sign the milk supply agreement by March 31, in response to issues raised by suppliers during consultation meetings over the co-op’s post-quota milk expansion strategy.

Dairygold has revealed that it performed well in 2012 and is heading into 2013 in a financially strong position and, in recognition of this and of the importance of the milk supply agreement, it will pay a bonus of 0.35 cent per litre on all milk supplied in 2012.