Dairy processing chiefs meeting in Portlaoise yesterday to discuss the future of the dairy industry were told it was time for farmers to assert their control in the sector.
The warning came from the president of the Irish Farmers' Association, Mr John Dillon, who told the meeting that farmers must drive the change required by demanding that co-op boards and management work together to bring efficiencies beyond the boundaries of each co-op.
"The industry must strip costs to the minimum, cut out duplication and achieve economies of scale in milk collection, processing and marketing, as well as co-ordinating investment to generate higher market returns," Mr Dillon said.
He warned the processors the benefits of savings from these efficiencies and higher returns must be passed back in the milk price to the 27,500 producers.
"The industry must demonstrate its willingness to co- operate by agreeing to centralised or regionalised milk testing, which would yield savings over the current system of each co-op having its own testing facilities," he told the meeting, which was convened by the Minister for Agriculture, Mr Walsh.
Mr Dillon said the three major players - Glanbia, Dairygold, and Kerry - which control three-quarters of the national milk pool, together with the Irish Dairy Board, carried a huge responsibility to bring forward initiatives that would return better prices to producers.
Macra na Feirme's national president, Mr Thomas Honner, called on the Minister for Agriculture to reduce expansion costs for dairy farmers by signalling his intention to cut the price of milk quota rapidly in the coming years. "By signalling a major cut in quota price, farmers who were uncertain about their long-term commitment to milking cows would be encouraged to make their minds up on their futures," he said.
Yesterday's meeting was the first in a series to be held over the next few months to encourage milk processors, farmers and other players in the sector to co-operate on creating efficiencies in the face of growing competition from abroad.
