Co-ops urged to prepare for future

THE country’s dairy co-ops have been urged by their national umbrella body to use the opportunity of the current strong markets to prepare for a future without quotas.

Irish Co-operative Organisation Society (ICOS) president Padraig Gibbons said the past year has been remarkable for the strength of the dairy and cereal markets.

The current strong dairy market was very welcome, after of years of decline and, hopefully, this strength will continue.

Mr Gibbons said forecasts from the European Commission and other sources are optimistic about the trends for consumption of dairy products in the EU and abroad.

“However, we cannot be complacent. Markets go through cycles. High prices stimulate extra production, which can outstrip demand, leading to oversupply, which impacts on prices,” he said.

Mr Gibbons told the ICOS annual conference in Dublin that Ireland should use the present buoyant market conditions, to prepare at farm, processing and marketing levels for the future.

Europe also needs to respond to the opportunity, which the growing market presents, and should not leave others to increase their market share.

“India, China, New Zealand and others are increasing production in response to extra demand and high prices. If Europe does not increase production, it will allow others to profit, while we forego opportunities.”