Dairygold rows back on planned loyalty bonus being linked to co-op purchases

Dairygold has announced that it will amend the structure of its planned loyalty payments.

It comes after the co-op met with its regional committees and after a meeting of around 300 suppliers in Mitchelstown voiced their dissatisfaction with how they say Dairygold is being run.

A five-person group from the meeting met with Dairygold management last Sunday.

In a statement last night, Dairygold said it had decided to amend the mechanism through which eligible Members and Customers may be awarded a potential year-end trading payment.

“In any year where such payments might apply, recipients will be rewarded for their direct trading activity, in the form of an additional Loyalty Reward Scheme top up payment,” the statement said.

It was also decided that any future potential year-end milk payments to Milk Suppliers will not be linked to their level of purchases with the Society and the previously proposed 6.0c/L threshold will not now apply.

All other elements relating to the Loyalty Reward Scheme remain the same, it said.

According to Dairygold, since it was first introduced in 2015, the Loyalty Reward Scheme has paid out over €21m to members and customers in shares and cash.

Dairygold said it would communicate the amendment to members shortly.

Speaking about the decision, Pat Clancy, Chairperson, said: “Dairygold is committed to its everyday goal of maximising Members’ income, through ensuring the Society pays the strongest possible milk and grain prices and minimising their input costs.

“Dairygold has a policy of rewarding Members who actively trade with the Society, thus helping to support the overall business performance. The focus of the initial updated scheme was to increase the rewards we pay to those actively trading. However, when it became apparent that Members were concerned over the change, which links potential year-end milk payments to the level of purchases, we reengaged with our Regional Committees, Focus Groups and Members. Following this consultation, the Board decided to amend the Scheme.”

In a statement in December, announcing the scheme, it said it was “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.”

A spokesperson for the co-op recently confirmed that it has received termination notices from a number of suppliers, but did not confirm how many.

Reporting:.independent.ie