Dairy co-ops face ‘difficult choices’

THE Irish dairy industry, worth €2.5 billion in exports, was told yesterday it has some very difficult choices to make in order to compete with its competitors.

Co-op leaders heard how their counterparts in Europe have brought about change through strong leadership, a focus on costs, as well as investment and innovation.

ICOS, the Irish Co-operative Organisation Society, said it hoped to inform, support and guide the board members of co-ops, who have to make the tough calls.

It has put forward a model structure for the milk processing sector to prepare for the future.

This is currently being discussed with co-ops and producers.

The aim is to make the best use of efficient plants and off-peak facilities, avoid duplication of investment, use factories to make products giving the best return and stimulate investment in product development.

Guest speakers at a strategy seminar held in Dublin by ICOS, the co-ops national umbrella body, outlined how leading world dairy businesses are positioning themselves for the future.

ICOS president Pat McLoughlin said the story of Arla Foods, the €6.8 billion Swedish-Danish global food group, is an impressive one, which should generate interesting debate among Irish co-ops.

“It has over the past number of decades evolved from dozens of small co-ops by a process of farsighted but sometimes painful mergers into a strong multinational co-operative, owned and controlled by farmers,” he said.