IFA calls for radical overhaul of dairy sector
IFA president John Dillon told a seminar in Cork that industry leaders have yet to tackle shortcomings identified years ago. Despite some recent welcome initiatives, the Irish dairy industry remains internationally uncompetitive and has done far less than its EU competitors to increase the value of its product mix.
“We know that CAP reform and WTO pose very serious challenges to the dairy sector, but dairy farmers’ incomes are already under intense pressure from lower prices and higher costs,” he said.
He said processors would be making a fatal mistake to believe that any comparative advantage at producer level is enough to win the battle for survival in the European dairy industry because it is not.
ICOS president Padraig Gibbons said the dairy sector is acutely aware of the challenges facing it. The current milk market and policy environment is the most challenging in more than three decades of EU membership.
Mr Gibbons said while increased direct payments to farmers would offset part of the effects of EU intervention price cuts, milk processors are implementing plans to strengthen the sector.
These strategies are to consolidate the assembly, processing and marketing of milk products and on adding value. In recent years, these developments extended nationwide and included mergers, acquisitions and joint processing agreements.
Mr Gibbons said the sector has a record of development and the its processing and marketing entities are facing up to the current set of challenges.
