Tyrone milk firm seeking new suppliers along east coast

Good on them .. Keep things ticking along .. jtt

How many producers do Strathroy have at present .. Which markets do they supply .. jtt

Not sure how many producers they have but they cover both North and South of the border here. They do a fairly big run in liquid milk and cream into local supermarkets under their own label and rebranded according to some of their customers.

If you find out let me know ??? jtt

http://www.farmersjournal.ie/srathroy-to-cut-non-qa-farms-by-5c-l-273879
Omagh, Co Tyrone-based dairy processor Strathroy Dairies will penalise suppliers who have not passed the dairy quality assurance (QA) audit.


Strathroy has written to all its suppliers in the Republic of Ireland warning them that strong penalties will be imposed from the summer onwards should farmers not be signed up to the Bord Bia Sustainable Dairy Assurance Scheme (SDAS).

Ruairí Cunningham of Strathroy Dairies wrote to suppliers this week outlining the processor’s stance on quality assurance. All dairy farmers must be signed up to the SDAS, or quality assurance as it's known, by 2018.

“There are a very small number of suppliers who have not yet passed the audit, for various reasons. Our goal was to become the first milk pool on the island to the 100% Bord Bia Quality Assured. This could have benefits in securing new business. I still feel it would help us retain existing business relationships, and grow them. Unfortunately, we cannot as yet test this theory,” Cunningham said.

Suppliers moved north

The vast majority of Strathroy’s milk pool is based in either Northern Ireland or around the border. However, a couple of years ago the processor managed to entice a large chunk of Wexford Creamery’s suppliers, disaffected over the sale of their processor to Glanbia, to send their milk across the border to Omagh, Co Tyrone, for processing.

In total, some 150 farmers are sending the milk north of the border.

“We have been left with no alternative but to impose penalties on those suppliers who have not yet passed the audit.

From 1 June, we will levy unapproved suppliers 3c/l on all their supplies. This will rise to 5c/l (from) 1 September

“It is with regret that we have to take this step, but to do nothing on the vast majority who have passed the audit, and continue to remain Bord Bia approved,” Cunningham concluded.

What is means

For a typical 80 cow herd producing maybe 25 litres per cow per day in June, the 3 c/litre monthly penalty comes to €22 per cow or a penalty of €1,800 on 80 cows on the June milk cheque. That scale of a penalty is completely unsustainable.

A number of Republic of Ireland-based milk processors have introduced very small bonus payments rather than penalties to bring the 10% to 20% of farmers not yet quality assured into the scheme.

Recently, the Carbery Group of west Cork co-ops decided if milk producers are not participating in the SDAS scheme by the 1 April 2017 they will charged a penalty of 5c/l.

Furthermore if not audited by 1 July 2017, the penalty will continue.

By the end of 2016 we understand Carbery had 97.1% of suppliers audited and 77% certified.