Director of strategy and supplier development at Glanbia Seán Molloy made the remarks during the Teagasc National Dairy Conference at Kilkenny on 28 November.

With the expanding national dairy herd expected to almost reach the Food Harvest 2020 goal of 7bn litres of milk this year, the issue of where the increased milk output will go remains a question for many dairy farmers.

“The single biggest challenge for farmers in my view is volatility,” Molloy told the conference, and advocated that farmers avail of Glanbia’s fixed price scheme.

“Glanbia fixed price scheme provides stability in terms of volatility,” Molloy said.

Molloy stated that there isn’t another purchaser of primary products in the world besides Glanbia which can give them a price guarantee for five years.

While Molloy came under some heat from attendants at the conference who asked with regard to Glanbia’s loyalty scheme if farmers were paying Glanbia to pay themselves, Molloy stood his ground and stated that all Glanbia’s schemes rewarded farmers.

Urbanisation

As director of strategy, Molloy outlined the importance of sustainability, which is an issue of increasing concern to consumers.

Molloy used the example in the US where 1% of the population feeds 99% of the population.

“When we talk about sustainable milk production, we need to understand the world we are living in,” Molloy said.

According to Molloy, this is a world where urbanisation is playing its part in consumer perception of the dairy industry, with an increased emphasis on food quality and traceability.

“We’re going to have to do the right thing, but more importantly we’re going to have to be seen to be doing the right thing – we need to stand up and communicate to the growing urban population.”

To deal with sustainability, Molloy believes that food, farmers and farming bodies need to address the issue of sustainability head on.

“No sector of the industry can go without challenges and farmers are going to have to engage with the industry.

“It is no longer enough to say we’re doing the right thing, we have to be seen to measure that in an increasingly transparent manner.”

Environment

On the question of the dairy industry and climate emissions, Molloy referenced the recent Citizens Assembly which voted to tax farmers for climate emissions. He told farmers attending the conference that “this is the true citizens assembly”.

However, he expressed a belief that while farmers should address the issue of climate change, that no one organisation could take ownership and responsibility for the question around increased milk production and its relation to climate change.

But farmers, farm organisations and food bodies have a responsibility to stand up and admit they have a problem and tackle it.

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