Management at Tipperary Co-Op are understood to be seeking redundancies and also asking staff to take pay cuts due to the financial position of the business. The Irish Farmers Journal reports that a wage cut of 14% is being considered – while no specific figure is available as regards potential redundancies. The dairy sector continues to face challenges due to concerns about limits on production, excess processing capacity in the industry and in addition the Co-Op has significant borrowings after investing heavily in a new Drying facility to produce a range of protein products.
New CEO John Hunter is attempting to engage on all stakeholders to find a way forward – there has been some speculation that the Independent Co-Op might develop closer links with a neighbouring Co-op in the future. Mr Hunter will be keen to secure commitments from farmers to continue to supply milk to the Co-Op in advance of the November 1st contract deadline. As of now the price the Co –Op pays it’s suppliers for milk is the lowest for the third consecutive month in a row at a stage of the year that is the peak period for milk production.
