IFA says co-ops must co-operate
The Association’s National Dairy Committee has identified seven specific areas for better co-operation between co-ops.
Speaking in Carrick-on-Shannon to the chairmen of co-ops in the north and west, Committee Chairman Michael Murphy advised them to:
Get involved in contract processing, with one enterprise contracting specific production to a more efficient operator.
Form joint ventures for product marketing and distribution.
Cut milk assembly cost by abolishing overlapping collection routes.
Adopt independent milk testing.
Get involved in milk trading, where smaller, depreciated plants co-operate with larger processors to maximise plant usage.
Co-operate on R&D and afford together the level of R&D unaffordable to individual enterprises.
Share the cost and benefit of new plant construction, with commercial arrangements to share the plant for processing.
“All co-ops’ priority must be to put the maximum money into farmers’ pockets. Western and Northern co-ops must continue their efforts to take cost out within their own boundaries,” said Mr Murphy.
