IFA: the dairy board can lead

THE Irish Dairy Board (IDB) must lead the rationalisation of milk processing and marketing, aided by the Government’s €100 million investment fund.

Irish Farmers Association (IFA) president Padraig Walshe made that clear at a meeting with the IDB chairman, Michael Cronin, and chief executive, Noel Coakley, on the future of the country’s dairy industry.

Mr Walshe said farmers, through their co-ops, did not have the means to make major investments, while the IDB had resources that were not fully leveraged.

“Our original concept involved €100m from Enterprise Ireland, €100m from the IDB and €100m from processors.

“As well as finance, a dairy board involvement would offer a market-led structure, making sure that all future investment and changes to our product mix are co-ordinated,” he said.

“If new plants simply produce cheddar cheese, and then expect the dairy board to sell it in the UK, it will disrupt the market for everyone, and take money out of dairy farmers’ pockets.”

Mr Walshe said the resources of the IDB must be utilised to ensure the right products are produced for the right markets. The IDB was built with farmers’ money, and dairy farmers, rather than a few chief executives, had every right to determine the future, he said.

“Some progressive co-ops, such as Carbery, Newmarket and Tipperary, deserve recognition for developing cheese markets in years when the easy option was intervention.

“Some farmers in those co-ops might now feel aggrieved that Government money is being used to help those who failed to make that switch,” he said.

Mr Walshe said the IFA had made it very clear to Enterprise Ireland that the investment programme should not damage those co-ops’ interests.