Partnerships with overseas co-ops likely to figure in IDB five-year plan

PARTNERSHIPS with giant overseas co-ops and the sale of under-performing subsidiaries are likely to figure in a new five-year strategy document which the Irish Dairy Board (IDB) is expected to publish in March.

The IDB has had discussions with Fonterra in New Zealand and with Dutch co-ops Arla and FrieslandCampina about possible product and storage exchanges that would be mutually beneficial during each other’s off-peak production periods, chief executive Kevin Lane told attendees at the Irish Farmers’ Association’s (IFA) Dairy 2020 conference yesterday in City West Hotel, Dublin.

The IDB recently disposed of its French subsidiary Loyez-Wossen via a management buyout. Mr Lane also said the IDB would consider other disposals. The Irish milk marketing body is considering other efficiencies as part of its plans to capitalise on Rabobank projections of 2.5% growth in global demand for milk, and the Government’s target to increase milk production by 50% up to 8.25bn litres of milk per annum by 2020. These targets will also necessitate targeting new emerging markets including Russia and China.