A new app by Concept Dairy has been launched today (Wednesday, September 8) with the aim of bringing price transparency to the global dairy industry and facilitating economic sustainability for farmers.
Concept Dairy was established by Diarmaid Mac Colgáin, a commodities trader with 15 years’ experience, who then spent four years working in the dairy industry.
He said that he recognised that farmers were subject to constant price hikes and falls, without any control over the situation.
Mac Colgáin said: “After working in the sector, I could see farmers were struggling with the volatility in the market.
“Initially you think it must be the fault of the processor that the farmers are receiving these prices. But, in reality, the root of the problem is that market conditions across the dairy supply chain have evolved, but the milk processors have not been supported to manage the evolution in the sector.”
According to the Concept Dairy creators, since quotas were lifted in 2015, the dairy market has become more dynamic and open, but processors haven’t had the tools to be able to manage their market risk.
“It’s really at no fault of the processors, but the time has come to bring about some change and create a more efficient, transparent and fair dairy sector that benefits the whole supply chain,” Mac Colgáin added.
Along with his partner, Jacqueline Fitzgerald, he set about creating a solution that he believes would support the whole dairy sector from farmer to processor to buyer.
Concept Dairy Farmer App
According to the creators, the Farmer App gives dairy farmers a view on live and accurate prices that they can lock-in when they choose, for up to two years into the future.
The Commodities Trading Risk Management platform goes into the milk processor helping them to understand and manage their risk, while at the other end of the chain, the team works with dairy buyers to create a fully connected and transparent supply chain.
Fitzgerald said: “Farming is hard work. It’s early mornings, long days and at the end of it, farmers don’t know if they are even breaking even, let alone being profitable.
“The Concept Dairy Farmer App is giving the primary producers – the farmers – some control.
“For the first time, they will be able to download the app and see live, accurate future milk prices that they can lock-in when they choose creating some financial security.
“If the farmer knows what price they are getting, they can start to plan, support the local economy by employing staff, embrace climate change initiatives because they will have the financial capacity to do so.”