Farmers launch new milk solids payment campaign
A new national dairy group calling themselves Dairy Ireland are set to launch a campaign to overhaul the way farmers are paid for their milk.
The group wants a payment system similar to that operated in New Zealand where returns are based on milk solids rather than volumes.
Details on the proposals are to be outlined at a Dairy Ireland conference in the Firgrove Hotel, Mitchelstown, Co Cork, next week.
The move will mirror similar initiatives being undertaken by Europe's largest dairy co-op.
Friesland Campina board member Frans Keurentjes, who will be speaking at the conference, said that the Dutch giant is in the process of moving to a new payment model that will be based more on milk solids.
Friesland Campina paid their 15,000 farmer suppliers an average of 38c/l of milk at 3.4pc protein and 4.4pc fat in 2012.
The price is based on the average price paid by 17 different dairy processors that buy 45bn litres of milk in four EU countries, along with an end-of-year bonus reflecting 50pc of the profit generated above this price.
"We are not worried about the product mix of the other processors. This price is totally transparent and reflects the integral value of a litre of milk. It's up to the management at Friesland Campina to make a profit after paying this price," said Mr Keurentjes