Dairygold Shareholders Stand Firm Against Milk Price Cuts
Source: dairynews.today
Dairygold shareholders are expressing strong opposition to any reductions in milk prices, citing concerns over farmer income and market competitiveness.
A faction of Dairygold shareholders has made it clear they will "not tolerate" reductions in the milk price paid by Dairygold to its suppliers. Spearheaded by the Concerned Dairygold Shareholders Committee, the group seeks assurance from Dairygold to maintain "the leading milk price," and has called for the abolishment of specific conditions tied to the loyalty reward scheme.
The announcement follows Dairygold's board decision to modify the loyalty reward scheme, while recent meetings have led to commitments regarding the milk price for 2025. Dairygold’s turnover for 2024 reached €1.4 billion, a rise of €10.6 million from the previous year, despite weather-related challenges impacting milk volumes and the oversupply issues for demineralised whey. The quoted milk price of 44.9c/L in 2024 marks a 6.5c/L increase from 2023, though some within the shareholder community feel the efforts "devalue" their contributions.
The shareholders have stressed the need for the co-op to manage expenses and ensure all financial outlays are beneficial to shareholders.
Dairygold, having collected 1.38 billion liters of milk in 2024, anticipates an increase to over 1.45 billion liters this year, while aiming for €14 million in savings through a new Business Optimisation Programme.
The broader market conditions pose risks, notably tariff uncertainties, yet constrained global milk supply portends positives for pricing. The co-op’s newly approved program will see staff reductions in a bid to improve profitability and sustainability.
The announcement follows Dairygold's board decision to modify the loyalty reward scheme, while recent meetings have led to commitments regarding the milk price for 2025. Dairygold’s turnover for 2024 reached €1.4 billion, a rise of €10.6 million from the previous year, despite weather-related challenges impacting milk volumes and the oversupply issues for demineralised whey. The quoted milk price of 44.9c/L in 2024 marks a 6.5c/L increase from 2023, though some within the shareholder community feel the efforts "devalue" their contributions.
The shareholders have stressed the need for the co-op to manage expenses and ensure all financial outlays are beneficial to shareholders.
Dairygold, having collected 1.38 billion liters of milk in 2024, anticipates an increase to over 1.45 billion liters this year, while aiming for €14 million in savings through a new Business Optimisation Programme.
The broader market conditions pose risks, notably tariff uncertainties, yet constrained global milk supply portends positives for pricing. The co-op’s newly approved program will see staff reductions in a bid to improve profitability and sustainability.
