The Irish Co-operative Organisation Society (ICOS) today welcomed the initiative by Glanbia Co-operative to further assist their dairy and grain farmers in managing current cash flow pressures arising from difficulties in the marketplace.

Glanbia has introduced a €55 million Advance Payment Scheme that will offer interest free cash flow support to member suppliers in periods when milk and grain prices are weak.

Seamus O’Donohoe, CEO of ICOS described the scheme as a cost effective and innovative cash flow management tool. He noted that co-operatives had been to the fore in developing an array of cash flow tools varying from direct price support from co-op balance sheets, and fixed price contracts, to offering extended credit terms and loan facilities to members.

Farmers, he said, cannot be completely insulated from price fluctuations in a global market. It was however, consistent with co-operative principles and values that co-operatives would use appropriate means within each of their resource capabilities to dampen the most extreme effects of volatility.

At a time when credit costs to Irish farmers from our banking system seemed disproportionately high, relative to their European counterparts, this measure will help to at least dampen the most extreme effects of cash flow pressures, he concluded.