Dairy Co-ops must adapt, says ICOS
ICOS president Donal Cashman told industry leaders that the sector has a long and especially successful record.
"It is this expertise and these strengths that we must use to the full in the years ahead," he said.
Mr Cashman said the Horace Plunkett summary of the co-operative objectives was "better farming, better business and better living".
"These objectives are critically important today as we plan and implement our strategic response to the challenges we face," he said.
Herman Versteijlen, head of the milk products division in the European Commission, said the EU milk sector will be increasingly confronted with outside competition due to ongoing liberalisation of international trade.
He said the actual price difference with the world market, of about 30%, has to be decreased in order to preserve internal and external share of the market.
With the help of direct, decoupled payments and the prolongation of the quota system, an orderly restructuring of the sector can be achieved to arrive at lower production costs, Mr Versteijlen said.
He said there is likely to be less production of bulk products, butter and skim milk powder, and increased production of cheese.
ICOS director general John Tyrrell told the conference in Dundrum House Hotel, Co Tipperary, a renewed focus is needed for the future on efficiency at farm and processing levels.
He said where increased scale or resources are needed to achieve these aims, co-ops should pursue collaboration with others who share these objectives. This can be through joint venture, contract processing or other sharing of investment in facilities and cost consolidation through rationalisation.
ICOS director of policy development, Martin Varley said the next few years will be volatile and difficult to manage and advance preparation is essential.
