Revolving fund to create €20m
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From 2015, the co-op will hold back 20pc of payments for all summer supplies that exceed this peak month.
This money will then be paid back to farmers the following March.
The Dairygold plan envisages €20m being delivered by the revolving fund, €15m from the loan note and €15m from share purchases.
The co-op is to apply for planning permission for the Mallow development over the next six weeks.
However, construction is not expected to start until 2015, with production expected to kick off in 2016.
It is understood that all Dairygold's farmers will be required to forecast their milk supplies for the five-year period from 2015.
These forecasts will form the basis of farmers' supply contracts and it is understood that penalties are proposed where supplies vary by more than 10pc from the projected volumes.