Tipperary Co-Op Advisory Board made up of 60 – to 80 farmers is to meet next week for a scheduled meeting.
It is understood that the meeting will consider the options facing the organisation as the 2023 Balance Sheet is expected to reflect a challenging financial position for the Co-Op.
The Agenda also includes the issue of Markets and Operations – CEO John Hunter has indicated that in some cases the Co-Op cannot pursue the most lucrative options due to contract commitments and declining milk intake.
The intake is reduced due to a combination of the poor weather impacting at farm level and some suppliers opting to leave to secure a better price for their milk.
It is understood that talks are at an advanced stage with Arrabawn Co–Op for some form of merger between the two organisations – there are benefits for both organisations as it could lead to efficiencies in operating in terms of lower staff costs and creating a more rounded larger organisation that could pursue the markets offering the greatest returns.
Any such decision would have to be approved by the shareholders.
The two milk processors have suppliers over several counties including Clare, Galway, Limerick, Offaly, Carlow, Cork and Tipperary.
It is possible that changes to the intake points could see both processors optimise their intake volumes and maximise the use of their processing capacities.
The broader dairy industry is facing a challenging environment due to the age profile of the farmers involved, market prices, limitations on expansion due to environmental impacts, labour shortages and the appeal of other careers for young people.
