Dairygold has said it is updating its Grassroots Milk Supplier Sustainability Bonus to offer a 33% increase in the payment, which the business said will result in approximately €14 million being paid out to participating farmers annually.
The bonus was introduced in 2023, offering 0.75c/L (equivalent) of milk to participating milk suppliers. Since its launch in 2023, Dairygold has paid out more than €17 million to participating milk suppliers.
93% of milk supplied to Dairygold is sourced from farms participating in the ‘Grassroots’ programme, the processor said.
The updated bonus will offer Dairygold suppliers the opportunity to receive 1c/L (equivalent) by participating in “impactful sustainability actions”.
The updated 2025 Grassroots Milk Supplier Sustainability Bonus programme includes new elements, focused on farm nutrient balance training and action, and on herd genetics, Dairygold said.
Nutrient balance is a leading metric for water quality impact. Awareness of it at individual farm level will help to drive additional appropriate action to protect water quality, according to the processor.
Dairygold also said that the herd genetics measures, including dairy beef, will further enhance herd performance to support more sustainable and profitable farming.
Commenting on the new updated Dairygold Grassroots Milk Supplier Sustainability Bonus, Ireland’s member of the European Commission, Commissioner Michael McGrath (a former TD for Cork South-Central), said: “Dairy processors across Ireland, including Dairygold, are doing a lot of proactive work with their milk suppliers to improve the sustainability of our dairy industry.
“The dairy industry is Ireland’s largest and most successful indigenous industry, supporting thousands of farming families across the country. It’s through participation in programmes such as ‘Grassroots’ that our family farms can future proof their operations to ensure we maintain our world-class dairy industry into the future,” Commissioner McGrath added.
Also commenting on the update to the bonus, Dairygold chairperson Seán O’Brien said: “We know that water quality is a priority issue for agriculture, and we’re committed to doing what we can to further drive action to protect and improve it across the Dairygold catchment.
“The updated training element of the Grassroots bonus, encompassing individual nutrient balance training and action, will go a long way towards achieving those positive results.
“However, we also need to ensure we’re given the time to demonstrate the efficacy of these measures. We’re also confident that our strengthened focus on genetics, including dairy beef, will further enhance herd performance and productivity, impacting positively on the bottom line for those farm enterprises and on the environment,” O’Brien added.
Dairygold chief executive Michael Harte said: “Our milk suppliers have made great progress in adopting more sustainable farming practices since the launch of the Grassroots bonus programme in 2023.
“We saw a requirement to update the bonus programme to reflect the changing nature of the challenges facing the agriculture industry, and we’re confident the updated Grassroots programme will go a long way towards addressing those challenges,” Harte commented.
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