Competition looks set to intensify in the farm insurance sector following Dairygold's decision to partner with Zurich Insurance to provide deals for its co-op members.
In a leaflet sent out to its more than 3,000 milk suppliers last week, as well as farmers who trade with the co-op, Dairygold stated that it had reached an agreement with Zurich Insurance to offer "preferential rates to Dairygold members and account holders".
The tie up between Dairygold and Zurich has been viewed in some quarters as a snub to FBD. However, Dairygold management defended the decision.
"Dairygold board and management are constantly seeking opportunities to provide financial benefits for its members," the co-op stated. Dairygold engaged with a number of product and service providers to negotiate preferential offers for the benefit of members and account holders. The outcome of these negotiations led to attractive offers being tabled by Top Oil and Zurich," Dairygold explained.
"Top Oil is offering all Dairygold members and customers the opportunity to apply for a Dairygold/Top Oil fuel card which can be used to purchase diesel, petrol and sulphur-free gas oil at very competitive prices. The Zurich offer relates to farm, household and vehicle insurance and it commits to providing competitive quotes with some specific enhancements to Dairygold members," it added.
The co-op stressed that members had to engage with the suppliers directly and that Dairygold's only role will be to confirm society membership.
A spokesperson for Zurich Insurance said the company was: "…delighted to be developing an affinity scheme with Dairygold to offer competitive farm insurance solutions for its members."