December 2020 Dairy Newsletter

Milk Price

The milk price for the month of November is unchanged at 33.47 cents per litre (152.15 cents per gallon) at 3.60% butterfat and 3.30% protein, including Summer Somatic Cell Count (SCC) bonus of 0.88 cpl and VAT at 5.4%. This includes 1.0 cent per litre milk price support from the stability fund.

The average price paid for the month is 41.99 cents per litre. This is based on the average butterfat of 4.87% and protein of 3.79%, including SCC bonus and VAT.

CEO Joe O’Sullivan Retirement

On behalf of the staff, shareholders and all associated with Drinagh Co-Op, we wish to acknowledge outgoing CEO Joe O’Sullivan on his retirement. Joe has been CEO of Drinagh since 1990 and in that time has overseen huge change. Some of the highlights from Joe’s tenure as Drinagh CEO include:

• Purchase of Carbery
• Modernisation of the branch network
• Diversification of the company portfolio and establishment of Drinagh Pharmacies
• Reformation of the Board of Directors
• Purchase of Farm Centre & James Lyons Bantry
• Upgrade of the Feed Mill to a state of the art milling facility

Joe is leaving the Society in good shape and ready for whatever challenges and opportunities await. We thank Joe for his huge contribution and guidance over the last 30 years and wish him and his family all the best for the future.

Chlorine Free Reminder

As previously advised, the board of Ornua agreed on a full removal of chlorine-based detergent products by the end of 2020. This is required as chlorine-based residues showing up in finished dairy products.

All milk suppliers are required to be chlorine free on both their bulk tank wash and milking machine wash from January 1^st, 2021.

Carbery will be testing suppliers to monitor TCM levels.

Seasons Greetings

Our Board of Directors, Management & Staff would like to wish all milk suppliers, customers & shareholders a Peaceful Christmas and a Prosperous New Year.

Quality Milk Suppliers

At the recent Carbery Milk Quality and Sustainability Awards, the Drinagh Co-Op Milk Quality Award winner was:

John O’Regan, Kielbronogue, Schull

Drinagh Co-Op Milk Quality runners up were:

Anthony O’Shea, Gories, Bantry

and

William Kingston, Tooreen, Skibbereen

The Drinagh recipient of the Carbery Sustainability Award was:

Tim O’Mahony, Cooladreen, Leap

On behalf of everyone in Drinagh, we extend our sincere congratulations to all the finalists on their remarkable achievement of consistently producing top quality milk.

The overall Carbery Winner was Tadhg Hurley, Kilbrittan supplying Barryroe Co-op.

Quality Milk Winner 2020

Milk Supply Agreement

Most suppliers have already signed and returned their milk supply agreement for milk supply from January 1^st, 2021.

To execute the agreement, you must complete and sign ‘Schedule 1’ including the volume forecast on page 12 and return the entire agreement to The Central Office by January 1^st, 2021.

New Appointment

Mr. James Herlihy has been appointed manager of the Central Hardware and Head of Agri for Drinagh. Since joining the stores division in 2007, James has built a wealth of experience of the agri stores division and a solid understanding of the customer base in the area having managed Dunmanway Hardware and most recently Bantry Farm Centre and Bantry Hardware.

As head of Agri, James’ role will include responsibility for Agri inputs including fertiliser. James is contactable at 028-30800 or 086 8618990.

Score Drinagh Feeds Notice

CHRISTMAS WORKING ARRANGEMENTS:

Mill Direct Phone Number: 028 30510

At Score Drinagh Feeds we would like to take this opportunity to thank all our customers for your valued custom, support and loyalty throughout the year. We wish you all a wonderful Christmas and look forward to your continued trade in 2021.

Fixed Milk Price Scheme 7

A maximum of 10% of 2020 supply was available for each milk supplier to be contracted in Fixed milk price scheme (FMPS) 7. As the scheme was undersubscribed each supplier that entered the scheme was able to fix their desired volume.

The completed FMPS 7 form with monthly supply levels included will be completed and sent back to all participants in January 2021.

Carbery Shares

Due to the prevailing level of uncertainty around valuations and the general economic landscape due to Covid-19 earlier in the year the share valuation was postponed until the end of 2020. The most recent valuation has put an indicative value of €3.99 cents on each share

This value will apply in respect of all share trading activity to be conducted in the 2021 year.

REMINDERS

• All Milk supply agreements to be returned by January 1^st 2021
• All suppliers to be chlorine free on both the bilk tank and milking machine wash from January 1^st 2021