IFA president Eddie Downey and IFA National Dairy Committee chair Sean O’Leary have embarked on meetings with all the main processing co-ops to examine how they propose to support milk suppliers through difficult months in 2015, as poor market and milk prices coincide with the end of quotas.

The IFA delegation has met Glanbia plc, the Kerry Group, Aurivo Co-op and the Carbery Group (owned by the four West Cork co-ops) in recent weeks. Other co-ops will be met in January.

Downey said: “I am very clear that the long-term outlook for the dairy sector is positive, with strong global demand growth expected to outpace growth in output for the foreseeable future. I am, however, equally clear that there will be times just like we are experiencing right now, where economic, weather or political factors can disrupt the supply/demand balance and create extreme negative price volatility.

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‘‘The only way the Irish dairy sector will succeed in capitalising on the global market opportunities is if all stakeholders – co-ops, banks, input suppliers, advisory services, Government and especially the EU – play their part in providing support for farmers to transition out of quotas with an improved ability to manage volatile incomes.”

Tough year ahead

O’Leary added: “2015 will be tough on dairy farmers, with poor prices, superlevy fines and tax liabilities seriously disrupting normal cashflow.

‘‘Investment plans may need to be reviewed, with elements potentially rescheduled.

“While the IFA is engaging with banks, Teagasc, Government and the EU Commission to address flexible finance, quality business and budgeting advice, taxation and market supports in crises, we are clear that co-ops are the most important stakeholder of all.

‘‘They are the purchasers of the farmers’ milk and therefore their primary source of income. They are often (rightly or wrongly) the first port of call of farmers for merchant credit and, in many cases, their preferred supplier of inputs,” O’Leary said.