Dairygold will ringfence up to €10 million per annum for a new 'Grassroots Milk Supplier Sustainability Bonus' programme, the co-op confirmed today (Friday, January 20).

According to the Mitchelstown-headquartered co-op, the bonus will be paid to suppliers who commit to particular actions on their farms designed to improve sustainability.

These will include reducing emissions, protecting water quality and improving soil health.

Dairygold's chair Sean O’Brien said he believes its milk suppliers must be at "the core of any positive action" that the industry takes to address climate change and environmental challenges.

"Rewarding them for the positive sustainability changes they are making on their farms is crucial to ensure we have as much support as possible for our collective goal of meeting our environmental targets," he said.

The Co. Cork-based co-op, which can trace its orgins to 1908, said the new bonus programme will build on the existing 0.25c/L sustainability bonus that it introduced in 2019.

However, it also stated that the new sustainability bonus progamme will give milk suppliers "the opportunity to receive a total of 0.75c/L (equivalent)" if they participate in the programme.

The co-op also outlined that to quality for the bonus payments, Dairygold suppliers must commit to six separate requirements, including:

According to Dairygold's chief executive Conor Galvin, the co-op has a "proud tradition" of working with its milk suppliers to promote and encourage adoption of best practices in milk production.

"Our milk suppliers are very aware of the need to enhance environmental performance," Galvin added.

According to Dairygold the new Grassroots Bonus programme is open to all milk suppliers and they will be paid from the month they sign up to the bonus programme.