Co-op to allay fears over new contracts

Dairygold is to hold one-to-one meetings to try to allay some farmers’ concerns over new contracts which will require milk suppliers to pay a contribution to the company on almost all the milk they produce.

Dairygold has committed itself to a €120m investment in a “world-class dairy processing facility” in Cork which will allow the company to process all the milk its 3,000 suppliers can produce once the existing quota system is lifted in 2015.

However, in addition to the cost of the expansion, Dairygold needs €50m for “working capital”.