In response to the story featured in Agriland earlier this week, highlighting the Irish Dairy Board‘s involvement in the forging of long term milk supply contract arrangements right along the Irish dairy supply chain, the Board has issues the following statement:
‘Irish Dairy Board (IDB) and its members are actively engaged in developing approaches which will assist in the management of volatility in dairy prices along the supply chain.
Long-term supply agreements with pre-agreed pricing mechanisms are one of a number of possible volatility management options, and such agreements are of increasing interest to customers, processors and farmers alike.
A number of significant IDB customers and potential customers have requested that the possibility of long-term supply agreements be investigated. IDB has responded to this request, and has engaged with its Members on the matter. ‘