Irish co-operatives must place an urgent focus on consolidation, according to ICOS president Bertie O’Leary.

Speaking at its national conference yesterday, O’Leary said there is an urgent need for consolidation in the dairy processing sector. He added that this is necessary now, as we operate in increasingly competitive and globalised trading conditions and that “extracting a fair margin from the marketplace is becoming ever more complex for Irish farmers”.

The conference looked at the challenges facing producers in the global supply chain and the role of co-operatives in strengthening the farmer’s hand in the future.

O’Leary added: “It is regrettable that the pace of consolidation among our dairy co-operatives has not been faster.”

He called on the chairs and directors of co-ops to focus on rationalisation and consolidation.

O’Leary said that the industry is not serving farmers’ best interests, especially as we face an ever-increasing global competitive marketplace with five international marketing platforms, 10 processing co-operatives and a further 13 milk-purchasing co-operatives.

To drive change and consolidation, ICOS announced the establishment of a new body called the Plunkett Institute. Its main aim will be to support and promote best practice in co-operative governance.

ICOS says that the institute will play an important and strategic role in providing the necessary leadership and management skills to the industry as it competes with large global players.