Dairygold stated today (Tuesday, January 14) that it updated its loyalty reward scheme with “the intention of further rewarding its members and customers who trade with the society”.
In a statement issued today the co-op said its loyalty reward scheme “is a demonstration of Dairygold’s ethos and belief, that a successful co-op is built on a strong relationship of mutual benefit between the member and the society”.
“Milk suppliers who trade with the co-op, contribute to its overall business performance, and should be rewarded,” Dairygold stated.
However the Co. Cork co-op has also confirmed that it had received milk supplier agreement termination notices from a number of members of purchasing groups over apparent concerns about changes to its loyalty reward scheme.
Hundreds of people attended a meeting in Co. Cork last night (Monday, January 13) to discuss ongoing concerns among Dairygold milk suppliers.
Many suppliers in attendance expressed their frustration at the price being paid for milk by Dairygold and about how they feel the co-op is being run.
A number of Dairygold milk suppliers are now seeking a meeting with senior co-op management.
Dairygold
In the statement issued today it also detailed that since the loyalty reward scheme was launched in November 2015, the loyalty bonus scheme has paid out €21.1million and that “the updated scheme seeks to increase the rewards paid to those who are actively trading with the society”.
The co-op added: “While the majority of Dairygold members have reacted positively to the proposed changes, we are aware of concerns expressed over the change, which links any potential year-end bonus or to the level of purchases by a milk supplier.
“Dairygold has sought to meet all members who expressed concerns, to offer clarification on the changes and will continue to engage with members at board level, management and through our committees and governance structure.”
It also addressed what it described as the “concerns expressed by some members” at last night’s meeting in the Firgrove Hotel in Co. Cork in the statement.
“Dairygold’s net bank debt remains at a very manageable level, within our banking covenants, and our strong balance sheet provides the flexibility to continue to invest in higher margin activities.
“The society’s capital investment projects over the past 10 years provide a world-class dairy processing infrastructure that has not only facilitated our milk suppliers’ expansion ambitions but also provides the foundation for higher value processing and more sustainable and lower emission operations, which will pay dividends into the future,” it stated.
Milk price
The Mitchelstown headquartered co-op also highlighted that it has “continually been a consistently strong performer in the milk price league”.
But acknowledged that “the returns from an element of our product portfolio, have been challenged in 2024”.
Dairygold added: “As normal, the overall financial performance for 2024 is currently being finalised and will be reviewed by the board, to determine the final position for 2024.
“Furthermore, as previously communicated, a cost and business optimisation review, which commenced in November 2024 is currently ongoing across the business, to ensure the business will be in a position to maximise the milk price to milk suppliers”.
It also said that it is endeavouring “to work towards the best outcomes for the co-op and for all our members”.