Dairy industry ‘needs funding’

INCREASED spending on research and development and re-investment are necessary to address the competitiveness issues identified in the latest dairy industry study.

But too great a focus is being placed on short-term returns by the farming organisations and this was restricting the industry’s potential.

Those are the views of IBEC’s Irish Dairy Industry Association, which welcomed the Prospectus Promar study published this week. Commissioned by the Department of Agriculture and Food and Enterprise Ireland, with the industry, the report calls for radical changes to meet future challenges including major rationalisation.

IDIA director Pat Ivory said recommendations to maximise the potential for higher value-added sales of ingredient and consumer products on the growing and enlarged EU market were welcome. This will require a significant shift in product mix and higher levels of spending on research and development.

The co-ops umbrella body, ICOS, said the dairy sector must develop in a way that will improve its competitive position and that of its producers. Dessie Boylan, president, said the report must be a catalyst for serious discussion at all levels.

Mike Feeney, executive director, Enterprise Ireland, said increasing investment levels in research and product development was absolutely vital. ICMSA president Pat O’Rourke said the report cost over €350,000 and delivered nothing more than aspirational and unquantified projections.