Co-ops accused of not passing on full benefit of milk Vat refund rise

Most dairy co-ops are not giving suppliers the full benefit of a 0.2% increase in the Vat refund on the milk price, said IFA’s Sean O’Leary.

The IFA dairy chairman said some West Cork co-ops are returning the benefit to suppliers, but most other processors are not. He urged all co-ops to apply the agricultural rate of Vat refund, which increased from 4.8% to 5% in January.

“It might be a bit naive to suggest that this was just an oversight by the co-ops,” said Mr O’Leary. “We have received reports from some farmers who have found that while the Vat is shown at 5% on their January and February milk statements, the Vat inclusive price is unchanged, which suggests that the net price, before Vat, has been slightly reduced.”