ICMSA tells co-ops to put farmers before profit and wage increases

DAIRY co-ops have been told to put the farmer first even if it means reduced profits and wage freezes for employees and chief executives.

The call was made by the Irish Creamery Milk Suppliers Association deputy president John O’Leary on the issue of the milk prices being paid to producers by processors.

He said co-ops seem to be struggling with the reality that unless farmers can make a decent income from milk production, then they will simply stop.

“The rapid increase in inputs this year will result in milk production costs rising by five cents per litre. Farmers now find themselves in a worse situation than they did in 2006, before last year’s respite,” he said.

Mr O’Leary said it is no use to farmers to hear the co-ops acknowledge that costs have increased dramatically and farmers are under pressure while, at the same time, making milk price cuts.

“We don’t need crocodile tears from the co-ops. These very same bodies are pushing for big increases in quotas and quota abolition, on the basis that there are excellent market opportunities and that the future is bright for dairy products,” he said.

Mr O’Leary said despite all these so-called opportunities, dairy processors have failed to return a strong price for existing quota, never mind additional quota that may be available in the future.

He said processors Kerry and Glanbia have indicated they expect strong growth and results in 2008, while employees of co-ops have seen no reduction in wages and will probably get an increase.

The situation for the farmer-suppliers is very different.

“We are now facing massive costs rises and a massive reduction in milk price and income. It’s not an abstract observation for us,” said Mr O’Leary.