The Munster Dairy Producer Organisation (MDPO) hosted its second public information meeting for potential new members in Co. Kerry last night (Tuesday, July 2).
MDPO interim chair, James Doyle, told the meeting in the Rose Hotel, Tralee that he was “overwhelmed” by the turnout of around 200 milk suppliers and thanked them for their attendance.
The producer organisation had already signed up 190 members ahead of last night’s meeting, he said.
The MDPO held its first public meeting after opening for membership in Adare, Co. Limerick last Thursday (June 27).
Munster Dairy Producer Organisation
In April, the Department of Agriculture, Food and the Marine (DAFM) granted official approval to the Munster Dairy Producer Organisation, which is Ireland’s second dairy producer organisation (PO).
James Doyle told last night’s meeting that the new organisation came about from “desperation, frustration and a lack of representation”, pointing to “broken promises going back over the years”.
He said that the MDPO is a “lawful, legal outfit” to represent milk suppliers and to negotiate on milk price and contracts on their behalf.
He appealed to all in attendance to consider joining the PO, which has a membership fee of €100.
“It gives us a licence to negotiate for you, otherwise we cannot do that without members,” he said.
Doyle said that the organisation, which is open to all suppliers across Munster, could negotiate a contract with any milk purchaser, but he believed that the “first port of call” should be Kerry Group.
He told the meeting that he believes processors will be “looking for milk” due to a decrease in supply.
Contracts
Limerick-based barrister and agri-business consultant, Ciaran Dolan prepared the rulebook for the PO and made the submission on its behalf to the department for approval.
He told the meeting that EU legislation for producer organisations was introduced to strengthen the position of farmers in the marketplace to negotiate collectively.
He said that the sole purpose of the MDPO is to negotiate on behalf of members and if approved by members, to enter into legally binding contracts of supply.
“The members will not have a milk supply contract with the PO, the contract will be between the individual farmer and the purchaser with an over-arching contract with the PO and the purchaser to guide the management of the contract,” Dolan said.
It was stressed that the MDPO would not own a farmer’s milk, but would be tasked with negotiating on their behalf. Any contract would be subject to approval by members.
Diarmaid Mac Colgáin, the founder of Concept Dairy, also provided an overview of the global dairy industry, which he said is worth $1 trillion.
He outlined the investments made by Irish milk processors in production facilities in recent years.
The MPDO will host its third public information meeting for milk suppliers at 8:30 tonight (Wednesday, July 3) at the Woodstock Hotel, Ennis, Co. Clare.
The interim council of the MDPO consists of 21 dairy farmers from Kerry, Limerick and Clare.
Doyle said that the election of a council by members would take place in the next 12-18 months.
The head of Kerry Group’s dairy division previously confirmed to Agriland that it is currently working on a new contract for its milk suppliers.