ICOS Dairy Committee Chairman, Jerry Long, last month announced the development of a protocol to provide for the orderly transfer of milk suppliers, without Milk Supply Agreements, between co-ops, should they wish to move.

The protocol, which will be applied by all ICOS affiliated co-ops and their associated milk purchasing entities, relates to milk suppliers who have not signed a Milk Supply Agreement or a Contract. Speaking at the announcement, Jerry Long said that “Irish dairy farmers have benefited enormously from the close relationship which they have with their co-ops. The stability which has existed has ensured that those co-ops have been willing to make the necessary investments in capacity, R&D and routes to market. Without the security which both parties have enjoyed Irish dairy farmers would not be so well positioned to face the post quota challenges. You have only to look at the difficulties facing UK dairy farmers to realise the strength of the co-op model” he added.

In agreeing a common approach to transferring milk suppliers, without a contract, all ICOS member co-ops have agreed to apply a 90 day notice period before commencing milk collection from transferring suppliers. On receiving an application from a milk supplier who wished to transfer from another co-op, and satisfying themselves that the milk is not subject to a signed Milk Supply Agreement or Contract, the recipient co-op, if they are in a position to take on the supplier, will send a notification to the existing purchaser, in a pre-agreed format, to allow that co-op to sort out any issues around debt, co-op shares etc. Mr Long added that “we all accepted the merits of a three month plus notice period under quota rules allowing for an orderly transfer on the part of suppliers seeking to transfer their milk supply to a new milk purchaser.  ICOS continues to acknowledge the right of any non-contracted milk supplier to transfer their milk supply on the basis that it be done in an orderly fashion”

Jerry Long went on to say that “ICOS and our Dairy Committee see this as a very important initiative, as it demonstrates co-operation between co-ops and can pave the way for a shared approach to many of the other challenges we face. Ireland, and our dairy industry are very small on a global scale, and we need to show a shared approach to many of our operations.”