The Irish Co-operative Organisation Society (ICOS) president, Edward Carr is calling for greater strategic co-operation, innovation and long-term thinking to secure the future competitiveness of Irish agriculture globally.

The president was speaking at the 131st ICOS annual general meeting held in Portlaoise, on Wednesday 3 June.

At the meeting, the president outlined that the dairy sector must focus on extracting greater value, improving efficiency and strengthening competitiveness, as Ireland's milk pool is expected to remain broadly static in the coming years.

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Carr also highlighted figures provided recently by Rabobank, at a meeting of the ICOS Dairy Committee with Minister Martin Heydon.

Against a backdrop of elevated EU and global milk supply, Rabobank outlined consolidation trends and forecast that EU milk production could decline by about 5% between 2025 and 2030. This contraction reflects tightening environmental and climate regulations, land use constraints, rising input costs and an ageing farmer population.

“For Ireland, as a major global dairy exporter, maintaining competitiveness will be critical. The analysis indicated that structural pressures will accelerate consolidation across European dairy processing, as tighter milk volumes drive processors to seek scale, secure supply, improve efficiencies and manage volatility,” he said.

“It was also noted that consolidation can deliver efficiency gains of 4% to 5% of revenues through operational integration, procurement efficiencies and better asset use.

“This necessitates an open-minded approach to enhanced co-operation across the sector, including joint ventures, shared services, strategic partnerships and other collaborative initiatives that can help co-operatives achieve scale, reduce costs, develop new markets and better manage volatility.

Carr explained that Ireland’s co-operative model has always been built on collaboration and there is significant scope for the sector to work together in new ways that strengthen farmer returns and ensure long-term security for rural Ireland.

CAP

The agricultural industry is also facing a critical period of policy change at European level, Carr highlighted.

“The future of the Common Agricultural Policy (CAP) concerns regarding potential reductions in CAP funding, ongoing challenges with the Carbon Border Adjustment Mechanism (CBAM), environmental regulation and geopolitical uncertainty all have significant implications for Irish farming and food production,” he said.

“Europe and Ireland must recognise that food security, strategic autonomy and environmental sustainability are combined objectives. A strong, properly funded CAP remains essential to underpin farm viability, investment and rural development.”

Generational renewal remains one of the greatest challenges facing Irish agriculture today, Carr also pointed out at the meeting.

He explained how young people will only commit to farming if they can see a viable future, a reasonable income and a supportive policy environment which will be the subject of a major conference that ICOS is organising which will be announced in the coming weeks.

Market volatility

Irish farmers also need to be supported to reduce the sector’s exposure to market volatility shocks, Carr said.

“It is disappointing that the Government has not yet seen fit to introduce a farm income stabilisation scheme,” the president stated.

“As proposed by ICOS, this would enable farmers to set aside up to 5% of their annual farm receipts tax-free during profitable years and draw down those funds over the following five years when incomes are under pressure.

“This would help farmers to manage income volatility, improve financial resilience and reduce reliance on emergency Government supports during market downturns.”

A workable and long-term nitrates derogation was described as critical not only for the dairy sector, but for the wider agri-food economy and Ireland's family farm model.

The extensive work undertaken by farmers and co-operatives to improve water quality and environmental performance was also highlighted, and it was said that this progress must be acknowledged by policymakers.

The ICOS president also paid tribute to Ireland's livestock marts, describing them as one of the most important institutions in rural Ireland.

“The co-operative marts system remains central to ensuring transparency, competition and fair market pricing in the livestock trade,” he said.

“At a time of significant change across agriculture, the role of marts in protecting farmer interests and maintaining vibrant rural economies is as important as ever.”