Local opposition to co-op closures
Dairygold Trading Division Manager Jim Woulfe has pointed out in a letter to milk suppliers and customers of each of the branches facing the axe that farming and related businesses are going through a period of rapid change.
The letter warns of the effects of quotas on all types of farm production and of Agenda 2000 and the Fischler proposals on Dairygold's business.
Mr Woulfe stated that business has also been affected by reduction in milk supplier numbers, direct delivery onto farms of the main farming inputs of feed and fertiliser, and continuous increases in overhead costs. "In order to have a sustainable agri-business operation into the future, Dairygold is currently implementing a widespread cost reduction and rationalisation programme," he stated.
He said rationalisation of the branch-store outlets is necessary for long term viability.
Reaction from communities served by some of the stores facing closure has been swift, with strong opposition already from the Clogheen, Glanworth, Kilcorney and Ballingeary areas.
A public protest was staged in Clogheen in South Tipperary yesterday, as locals demanded that the store be kept open.
A local spokesman said the planned closure of the Clogheen outlet and the nearby Ballyporeen and Arfinnan outlets would force local farmers to travel over poor roads to Cahir, and would result in a loss of business from Dairygold Co-op to competitors.
Almost 100 people attended a meeting recently in Kilcorney in mid-Cork, where an action group has been formed to reject the co-op branch closure.
The group met with Dairygold management last week-end and asked that the closure be deferred until issues raised can be resolved in a way acceptable to local farmers and the Co-op's management.
A further meeting scheduled for Kilcorney last night was deferred until next Monday to give Dairygold management time to consider the deferral request and convey their response to the local area representatives.
Farmers in Glanworth have claimed the closure of their local branch in north Cork would force them to travel to Fermoy, adding to existing traffic congestion on busy local roads.
According to Dairygold management sources, the need for the branches has declined greatly since the Co-op was formed out of the merger of the Ballyclough and Mitchelstown co-ops. Since then, the number of milk suppliers who might use the branches has fallen from 6,300 to 3,900 at present.
The stores were to close last May, but following protests, they were kept open, forego ing annual savings to the Co-op reputed to be €1m. Now, pressure has increased on the Dairygold management to eliminate weaker, non-essential activities, ahead of an expected deterioration in financial performance in the soon to be announced 2002 annual report.
The co-op's new chief executive Jerry Henchy is understood to be focusing on reducing the cost base. His five year strategic development plan is also expected to include building on profitable operations such as branded consumer foods.
There is also pressure for efficiency from public protests by milk suppliers calling for better milk prices, following Dairygold's February milk price cut of 0.56 cent (2p/gal).
Dairygold has responded by closing its livestock mart in Mallow and selling the site for development.
The co-op will develop a €7.5m store on a site it owns in Mallow.
Their existing Mallow co-op will be vacated, and may be developed or sold.
Dairygold is one of the country's largest multi-purpose businesses and the largest farmer owned co-op.
With more than 8,000 active shareholders, it employs in excess of 3,000 people in Ireland and overseas and had a turnover of almost €1 billion in 2001.
