Dairy sector should 'modernise' rather than change radically

The dairy processing industry should adopt a programme of "progressive modernisation" rather than going for radical changes, Bord Bainne's top executive said yesterday.

Managing director Dr Noel Cawley told the National Dairy Conference in Cork that, while there was a need for efficiency in the processing sector, there was no need for destruction or revolution in the sector.

With dairy products making record prices on world markets, Dr Cawley said he believed the there were four or five years to plan the future of the industry which is facing major change because of the withdrawal of EU market supports.

Dr Cawley refused to comment on a statement by Mr Jerry Henchy, the chief executive of the troubled Dairygold co-op, that the board needed to reform its structures radically.

However, Dr Cawley said Bord Bainne did its business its own way and it was a voluntary decision by any co-operative to get involved with selling product to the board which was having a very good year.

"There is not going to be a radical overhaul of the processing industry. It needs to move slowly and effectively. Progressive modernisation is what I would recommend," he said.

Dairy prices were likely to remain relatively stable, he said, allowing about four or five years to plan the changes that were needed.

"This year has been a reasonable year. How can we do something that is extremely radical? How are we going to be able to process the milk. There is going to be the same volume of milk available," he said.

He said while there would be major changes at farm level, most of the production facilities which were in place here were needed - they could not be knocked out.