Proposed amendments to the EU’s Common Market Organisation (CMO) regulations have prompted unease in the Irish dairy sector.

The changes propose significantly enhanced requirement for compulsory supply contracts to be put in place between farmers and processors.

However, Irish dairy co-ops contend that the new proposals diminish the input from member states and ignore the relationship between co-ops and their members.

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“The previous legislation recognised the position of co-ops and the relationship they had with their members and also allowed the member state to form view as to whether compulsory contracts are necessary at country level,” ICOS told the Irish Farmers Journal.

“While we welcome the new Commissioner’s change in tone in his relationship with farmers, and his desire to strengthen the position of farmers, we do not support this change.

“That’s for two reasons; firstly, there’s a considered view that compulsory contracts of the type set out will actually reduce prices paid to farmers,” the co-op organisation argued.

Position of the co-op

“And, secondly, as it ignores the farmer-co-op relationship, it undermines the position of the co-op, and risks damaging the one business model that has truly delivered for milk suppliers across Europe.”

This view is not shared by leading agribusiness consultant Ciarán Dolan.

“I do not believe that the present status quo regarding the supply of milk in Ireland works extremely well and I see no merit that this matter would be left to member states to determine whether or not contracts are mandatory,” he maintained.