With the Conservatives in the UK winning a relatively unexpected victory in the recent elections, the possibility of a British exit (BREXIT) from the EU became a step closer.

It might be worth considering the possible implications for the co-operative Irish dairy industry.

Firstly, despite our ongoing drive to develop third country markets outside Europe, the UK remains by far the main market with 2014 estimates putting around 32% of our dairy exports there.

The monetary value of these exports is estimated by the CSO to be in the region of over €1 billion, across a wide basket of dairy product types.

While this share is declining in recent years, there is no doubt that Britain leaving the EU, and by extension the single market, would leave our government and dairy industry scrambling to retain market share. This is even before a sensitive UK dairy industry is given the legal right to slap tariffs on Irish goods coming into the UK if they so wished to make them uncompetitive in preference to domestic UK produce.

This possible vista is coming sooner rather than later with the Conservatives have vowing in their published manifesto to deliver an ‘in-out’ referendum on EU membership by 2017 at the latest.

Another issue of concern for our industry would be the legal status of our co-operatives, some of whom such as Lakeland and Town of Monaghan draw membership from both sides of the border in Ireland. There is legislation for transnational co-operatives, but these currently operate internally within member states of the EU. While ICOS is confident that these issues can be sorted out the do present yet another important implication for member dairy co-operatives.

It also must be mentioned that other co-ops and dairy businesses in the south have significant installations and business in the North as well as in Britain itself, all of which will require difficult detangling should the UK decide to leave the EU.

ICOS would hope that the UK remains a strong partner with us within the EU, and we as an organisation have a very strong relationship with the various NFUs of the UK. We hope for the mutual benefit of us all that they do not ‘sleepwalk’ their industry out of EU member ship and possible send us all into a tailspin.

By Conor Mulvihill