Be more competitive, co-ops urged
Farm Services and Environment Committee chairperson Conor Creedon said generally speaking farmer members of co-ops would prefer to get their inputs, such as meal, fertiliser, medicines and the like, from their own co-ops, as they feel they are supporting their own business.
However, farmers in certain areas are beginning to get disillusioned with their own co-ops because of the massive price differences with other suppliers. Some have deliberately been moving their business away from their co-op stores in an effort to show how much power they still hold.
“This isn’t good for either party as the co-op is depending on their farmer members’ custom, and the farmer is depending on their co-op for a better return for milk,” he said.
Mr Creedon said it was completely understandable for farmers to shop around for the best price for their inputs, given that the price cost squeeze on the farming community has never been so intense.
Farmers were constantly being advised to reduce their costs and - as they know only too well - farm gate prices are actually falling in real terms.
The only way, therefore, a farmer can maintain their profit margin is by cutting costs.
“ICMSA would like to see co-op stores offering the best prices around, by taking a leaf out of their members’ book and becoming more efficient,” he said.
