Concept Dairy has launched its app, giving all dairy farmers access to live dairy prices that “they can lock-in when they choose”.
Diarmuid Mac Colgáin has established the business to bring price transparency to the global dairy industry. He has a desire to facilitate economic sustainability for farmers, starting right here in Ireland.
The commodities trader, with 15 years’ experience, spent four years working in the dairy industry. Here, he recognised that farmers were subject to these price hikes and falls without any control of the situation.
As the grandson of a dairy farmer, he could not reconcile that this was a situation that the farmers should be facing in 2021.
“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. Milk processors have not been supported to manage the evolution in the sector.”
Since quotas were lifted in 2015, the dairy market has become “more dynamic”.
Impact all the supply chain
He said it is an open market now, but processors have not had the tools to manage their market risk.
“It is 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.”
Diarmaid and his partner, Jacqueline Fitzgerald, set about creating a solution that would support the whole dairy sector from farmer to processor to buyer, recognising that to provide an effective solution, they would have to impact “all parts” of the supply chain.
They believe this new app is an “important step” in giving farmers control of their milk price.
How does the app work?
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 understand and manage their risk.
Meanwhile, at the other end of the chain, the team works with dairy buyers to create a “fully connected and transparent” supply chain.
Giving farmers some control
Jacqueline 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 to create 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.”
Free to download
The Concept Dairy Farmer App is free to download on Apple App Store and Google Play from today.