THE Irish Farmers Association has thrown its weight behind the proposed merger between Avonmore Co-op and Waterford Co-op, and has described the merger as the best option for farmers and shareholders to develop a strong competitive entity in the face of world market challenges".

A meeting between a senior IFA delegation and the chairmen and chief executives of both Avonmore and Waterford was held in Waterford on Monday night. At the meeting, IFA president Mr John Donnelly said that a strong farmer-controlled Irish agribusiness was essential to secure the long-term future of farm families.

"It is vital that the structure of the dairy industry be properly consolidated to realise the savings and re-investment needed to allow the continued payment of the highest possible milk price in the long-term interest of dairy farmers," said Mr Donnelly.