Co-ops urged to make tough calls and cut costs to stop milk price fall

The country’s dairy co-ops were urged yesterday to review all their business processes in a bid to halt the slide in milk prices. IFA Dairy Committee chairman Sean O’Leary also called on the European Commission to focus on measures to support dairy farmers.

He said the IFA is continuing to work hard at home and in Brussels to secure a review of the intervention ‘safety net’ level. Mr O’Leary said this is needed to help put a more realistic floor under markets. Superlevy funds must also be used to support farmers through this difficult period.

“We appreciate the support for our campaign from co-ops and industry stakeholders, and the fact that the milk price in many co-ops was supported in the first half of this year,” he said.

However, Mr O’Leary said it is now crucial that co-op boards and management would make every effort to stop the milk price slide.

“As well as investing in additional capacity and developing options to help farmers cope with volatility, the co-ops must now refocus on internal efficiencies and necessary consolidation.

Mr O’Leary urged co-ops to review all business processes from milk collection to marketing.