Centralised milk testing laboratory postponed after cost benefit review
The Irish Co-operative Organisation Society (ICOS), yesterday said it had brought forward detailed proposals as part of initiatives encouraging co-ops and processors to collaborate in long-term deals and industry-wide restructuring.
“Milk testing operations would have been pooled to one central laboratory, which would have tested milk for payment, herd recording and herd health and management parameters. While a significant number of dairy processing co-operatives did pledge their support, the combined volume of testing involved was not deemed to be sufficient.
“It was decided that the considerable individual co-op restructuring costs to be incurred would outweigh the benefits to be achieved in a centralised model,” it said.
ICOS president Pat McLoughlin said he was disappointed the current initiative had not continued and he thanked all participants in the process for their co-operation.
“This initiative was intended to reduce costs, support co-operative businesses and deliver a better service to farmers…
“We will revisit this concept in the future when the economics of consolidation may be more favourable.”
Mr McLoughlin added that ICOS will continue to work with the industry to pursue all avenues of cooperation and consolidation.
Meanwhile, Glanbia’s decision to raise its February milk price to 26 cents per litre must be followed by other co-ops, the Irish Creamery Milk Suppliers Association says.
ICMSA Dairy Committee chair Pat McCormack said all other co-ops should immediately follow suit in order to alleviate some of the financial pressures on farmers and to reflect the improved market situation.
“While the decision is welcome, the reality is that even at this price, dairy farmers are still producing milk below the cost of production.”
He said milk prices must return to sustainable levels quickly in order to allow farmers meet their debts.
