IFA seeks to reduce dairy farmers' exposure to market risks

The pressure on the incomes of dairy farmers shows co-ops rely too much on farmers to bear too much of the risk attached to price volatility.

This is unsustainable. Short term, co-ops need to continue to find ways of supporting prices and farmers, while longer term they need to develop more options for farmers to hedge their incomes.

The dairy market downturn is lasting longer than expected, and is stretching to breaking point the cashflow and confidence of many farmers who expanded in response to industry encouragement.