IFA Challenges Dairy Industry to Improve Milk Prices

IRELAND - The dairy industry has been challenged by the Irish Farmers Association (IFA) to urgently restructure its operations and deliver improved milk prices to its suppliers.
calendar icon 18 September 2009
clock icon 1 minute read

A study commissioned from Prospectus, the consultancy company, shows that savings of some €81.5 million can be achieved. The study claims tangible gains can be made through greater efficiencies, improvements in output value, greater co-operation, a better product mix and more marketing co-ordination reports The Irish Examiner.

It shows there is at least 2c/l per year to be made over the next two to six years from restructuring the industry. IFA president Padraig Walshe said dairy farmers cannot afford to wait around when such value can be realised. Decision time for the industry is now, he said.

The study was commissioned to demonstrate to dairy farmers the true monetary value of industry co-operation and consolidation, and to help move the current Milk Ireland discussions to the action stage before the year end. Mr Walshe said 2c/l is equivalent to around €81.5million over the national creamery milk pool. Paying two-thirds of this in improved milk prices to farmers would be worth €3,300 per annum to the average supplier. This would still allow about €27million per annum for the industry to service necessary investment to grow processing capacity as milk quotas are removed. Mr Walshe said this would guarantee productive re-investment at processing level which, within a more co-ordinated industry, has the prospect of further return increases.

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