The role of ICOS as well as retailer power were treated with farmer anger at the Teagasc winter/liquid milk meeting on Thursday.
While the technical content in the presentations was very strong there was a sense that some of the farmers present fear for the future of winter milk production.
TJ, why are you here and what do you represent?
One farmer argued that it’s time we had a real debate on the elephant in the room – on where the sector is going.
He said: “How we get there won’t happen unless we have debate on it, will it be rationalisation by evolution, and, can the industry survive it – we need to debate it, among co-ops and farmers on the ground.”
Farmer frustration
In the question and answer session at the end of the presentations some farmer frustrations at the margin left for the farmer emerged with questions directed at ICOS boss TJ Flanagan.
Co Kildare farmer and outgoing Fresh Milk Producers chair Larry Hannon asked from the floor what the role of ICOS is.
“TJ, why are you here and what do you represent? The role of the retailer and processor is part of the whole mix. The reality is any pressure on trade comes back to bite us the farmer.
“You are there to represent us, to create a sustainable structure – so how do you see that working?”
Flanagan responded by saying ICOS is there to support the boards of the co-op make the right decisions for farmers.
“Co-op board members set the strategy and co-op management set the detail of tenders etc. We (ICOS) support the boards and co-op about how to devise strategy so members don’t just have to take what is suggested by management.
“Yes, I understand frustration from farmers at perennially being squeezed, but, the reality is farmers as board members still have access to the top table which is a good thing.”
Patrick Gowing- "very few expanding farmers think about cost of grazing infrastructure. It costs about €625 per cow at 3 cows/ha. Debt" pic.twitter.com/Cqq2KeZ34V
— FJ Dairy (@FJDairy) October 26, 2017
Retailer power
Another frustrated farmer suggested what was happening around the annual contracts for fresh milk with retailers was absolute “lunacy”.
“TJ spoke about branded milk and that’s fine – but the lunacy of the last two years where co-ops undercut each other for market share is unsustainable. It’s time common sense impacted on actions because it always ends at the farmers door. We are giving away our margin to supermarkets and there will be no business unless cop-on is part of the picture.”
Speakers at the Teagasc winter/liquid milk conference included ICOS CEO, TJ Flanagan, Teagasc researchers and specialists Joe Patton, Bran Garry and Patrick Gowing. About 150 farmers and trade represenatives attended the conference in Navan, Co Meath.



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