Outgoing Kerry Group chief executive Stan McCarthy has said the Irish dairy industry needs a generational change. Speaking exclusively to the Irish Farmers Journal this week, McCarthy said the industry needs fresh blood if it is to be successful in the years ahead.

“Generational changes don’t happen every day but the Irish dairy industry needs a generational change and a new way of thinking. Irish dairy has a reputation and it can compete but it has to deviate from the traditional thinking,” said McCarthy.

The Kerry chief added that rationalisation within the industry was also necessary. “The industry needs to be committed to it and be prepared to invest in it. The dairy industry needs to take the long-term view,” he said.

Decade

After almost a decade at the helm of Kerry Group, McCarthy will retire from his role as chief executive in September this year.

Asked what his highlights had been during his time as chief executive, the Kerry native said it always filled him with pride to see the blue logo of Kerry Group on the front of buildings and factories when he travelled around the world and how it was recognised globally.

McCarthy’s outlook for global dairy markets in 2017 was positive after a difficult period for milk prices and hinted there could still be further price increases to come.

“There’s a sense that some sort of equilibrium is creeping in now after the collapse in prices from the increase in milk supply. And there might be some more upside (price) left in the market,” he said.

McCarthy added that the supply reductions have certainly had an effect on the market over the last five to six months in terms of helping the price recovery. The Kerry boss said he was actually surprised that it happened so efficiently. Despite the improving outlook for 2017, McCarthy said the Irish dairy industry needed to be vigilant of the milk supply situation in the US.

“One thing we have to take into account is if the US continues to plod along and be a strong participator in international dairy markets. Will they get so strong that they set the tone? I don’t know. But we certainly wouldn’t want to ignore them because they hold the release valve. (US dairy farmers) are making money at current prices and will be able to avail of affordable feed prices.”