Beef POs cleared to negotiate prices collectively
As few as 20 beef farmers can come together to strengthen their position by forming a producer organisation (PO).
And a lower number of members in a specific production or geographic area can be allowed by a derogation in the legislation signed by Agriculture Minister Simon Coveney last week, to give legal recognition for the first time in Ireland to beef POs.
He said the Department of Agriculture is now available to work with these groups, and assist them to get started — though experience has shown that successful groups are those which are driven by the members, said the Minister.
Setting up a PO enables farmers to collectively negotiate cattle prices with processors, or input prices, and to pool resources to improve on-farm efficiencies.
The Department strongly advises that PO members should market at least 75% of their cattle through their organisation.
POs should facilitate and encourage activities not directly related to sale of produce, such as training, group farm visits and discussion groups.
Hiring a dedicated employee for administrative, logistical and financial duties should be considered.
Duties such as secretarial work, lairage or transport, could be outsourced.
Mr Coveney promised an adjustment to the Rural Development Plan, in order to fund POs to engage specialist facilitators to help them get them off the ground.
Prospective POs should gauge interest among local beef farmers and other interested parties, and then begin accepting members.
Statutes should be drafted and made available for adoption by members in a democratic vote.
These statutes must relate to production, marketing, and protection of the environment; allow members join one PO only (except by derogation); and set down rules and procedures for membership and management.
Where the PO requires a minimum commitment of produce from members, this commitment must be specified.
Members must remain in their PO for at least one year.
Each member must have equal voting rights and shareholding in the PO.
Rules should set out how members are nominated to negotiate with beef processors.
Once a PO fulfils all the requirements, members can register it as a legal entity with the Companies Registration Office, and apply to the Department of Agriculture for recognition.
