Dairygold Revises Year-End Milk Payment Policy Amid Supplier Backlash

The adjustment comes after extensive discussions with regional committees and focus groups, prompting the Dairygold board to amend its payment mechanism. While suppliers may still qualify for a "year-end trading payment," the previous requirement of a 6c/l trading threshold has been scrapped.

Dairygold Chair Pat Clancy emphasized the company’s commitment to optimizing supplier income through competitive milk and grain prices while minimizing input costs. He noted that while the loyalty reward program was designed to benefit active traders, concerns over linking year-end payments to purchasing levels led to a strategic reassessment.

"The initial update aimed to enhance rewards for those actively trading. However, after engaging with our members and stakeholders, we recognized the need to adjust the program to address their concerns," Clancy stated.

Since its introduction in 2015, Dairygold’s Loyalty Reward Scheme has distributed €21 million in shares and cash to its members and customers. The revised framework underscores the co-op’s responsiveness to supplier feedback and its focus on strengthening business relationships without restrictive trading conditions.