Dear Editor,
In an essay penned by Sadhbh O’Neill, it was depicted that dairy farmers’ investment in co-operatives has been steadily diminishing, with the broad profits of the industry being funnelled to unidentified shareholders while the farmers are burdened with tremendous debt. This assertion was based on recent data from the Teagasc farm survey. Nonetheless, an essential fact is being overlooked here.
Contrary to this argument, around 85% of Irish milk is procured by conventional co-operatives. These have no outside investors and all the shares are held by ordinary farmers. If profits are made, it’s these farmers to whom they are directed, in the form of milk prices and support. Notably, last year’s published financial statements from all dairy processing co-operatives show a maximum profit margin, ranging only from 2% to 3%. Hardly what someone would label as “vast.”
The claim about dairy farmers being burdened with significant debts is a misconception as well. Irish dairy farmers carry bank debt roughly in the range of €1,000 to €1,200 per cow. Interestingly, when contrasting these debt levels with countries having similar types of farms and systems, like Denmark, the Netherlands or New Zealand, the debt per cow in Ireland amounts to less than 10% of theirs.
Yours faithfully,
Edward Carr,
President,
Irish Co-operative Organisation Society,
Dublin 2.