Following a successful 15-year career in the energy and trading markets in London, Diarmaid, our Founder, was approached to move into the world of dairy to help set up a trading and risk management function for a major international dairy Co-Operative.
Combining his years of experience in multiple commodities, Diarmaid soon realised there were many opportunities to expand and improve how the dairy industry operates.
Diarmaid kept coming back to the same question:
Are farmers getting a raw deal with fluctuating and inconsistent milk prices?
Yes.
Is it the Processors’ fault?
No.
Milk Processors, or Co-Ops, were set up to process milk. They were not set up to be commodity traders. But since the abolition of EU milk quotas in 2015, extreme volatility has hit the dairy sector globally, and Processors have had to adjust to new market conditions. In recent years, Processors have had to continually innovate product channels, while at the same time try and respond to challenging market conditions.
Farmers have very little control over their milk price, and as a result are subject to the highs and lows of the post-quota era.
There is often little or no pricing consistency for farmers. With many farms operating on tight margins, even a small change in milk price can have enormous consequences impacting a farmer’s viability and livelihood.
At the other end of the dairy supply chain, dairy buyers are looking to purchase ingredients with fair and consistent prices. They too have been subject to the volatility in the markets facing increasing procurement costs without having the tools available to manage the price risk and volatility.
The dairy industry doesn’t have to operate this way.
Concept Dairy’s mission is to transform the dairy industry to create a transparent and fair platform where farmers choose what price they will get for their milk, processors are able to refocus on processing rather than trading prices and buyers receive efficiency and value.
Concept Dairy is based on transparency, efficiency and independence:
Transparency: Currently there is very little transparency in the market. Concept Dairy prides itself on acting with clarity and transparency. We tell you the market as it is.
Efficiency: Concept Dairy’s platform is simple and easy to use, yet brings a level of sophistication that puts you in control of your sales prices/risk/purchases.
Independence: Concept Dairy is totally independent. That means that our prices are fair, transparent and determined by the market. Prices cannot be manipulated by any one party. We help you take control – you decide when you want to lock-in your price and that can be done at any time.
We want to make the dairy industry better for everyone.
