10th April 2013 (Download Word Doc Press Release)

ICOS calls for Dairygold ‘post quota’ plan to be endorsed by members

Seamus O’Donohoe, CEO of the Irish Co-operative Organisation Society called on all members of Dairygold to fully endorse the ‘post quota’ plans already approved by the Board of Dairygold after lengthy consultation with their membership.

The central objective of the plan, he said, is to ensure that producers who supply the co-operative are paid a competitive price for their milk over the longer term.  For Dairygold to deliver this objective and to ensure that its members continue to own and control the business, its milk investment plans must be in part financed by producers who are prepared to make a long term commitment to supply to Dairygold.

A key competitive advantage that a co-operative must achieve over competing businesses is the commitment of their producers to supply their milk to the co-operative over the long term.  The detailed survey work engaged in by Dairygold has enabled the co-operative to predict supply patterns more accurately and plan its capital expenditure in an optimal manner.  The milk supply agreement is central to the capacity to plan forward and minimise capital investment.  Without that level of commitment from producers, Dairygold’s capital expenditure planning would be more uncertain and would end up costing farmers more in the longer term.

Mr O’Donohoe said that ICOS was urging all members to acknowledge the painstaking research, planning and consultation with producers that had gone into developing the Society’s post quota plan  and to give the plan  a resounding endorsement by voting ‘yes’ to Resolution 1 and ‘no’ to Resolution 2.

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For further information contact; Seamus O’Donohoe, CEO, ICOS: 087 2867349 or seamus.odonohoe@icos.ie

Media Information:  Tim Kinsella, MKC Communications, 086 813 7512