The principles of a co-op have been torn asunder
I agree very much with him on this, along with the many farmers who have attended meetings around the country and voiced their concerns.
I also see Eddie Downey of the IFA has expressed similar reservations.
In the case of the BGDP suckler scheme the farm organisations had plenty opportunity to raise changes they wished with the Dept of Agriculture prior to launch.
I do find it very strange however that the farming organisations hold a very different view on a remarkably similar stipulation in Milk Supply Agreements (MSAs) recently introduced between dairy farmers and processors.
In fact they have actively colluded in their introduction.
Some processors have time periods of five to seven years on these ‘legally dubious’ contracts. These lengthy contracts seem to be at the behest of the lenders to these processors.
Thus the ‘tied sale’ is collateral being given by the farmer to the lender of the processor.
I say ‘legally dubious’ in my opinion because they confer all the benefits on one side and none on the other.
The processor, usually a cooperative, have demanded that the farmer contracts in, for a long period of time, without any protection or negotiating rights in relation to standards and price which, at any time, can be changed at the whim of the board and executive of the co-op.
The farmer on the other hand cannot cease to supply in any way.
For signing this agreement he has received nothing in return. The co-op’s say they will take all the milk he produces in return for signing.
That is no concession since, by its very nature, with the farmer, as a member, this was always the case since these were founded well over 100 years ago.
Horace Plunkett and AE Russell must be spinning in their graves.
Co-op principles have been stood on their head.
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