An attempt by the second largest farm organisation to become directly involved in wage negotiations in the forthcoming national pay talks is likely to be resisted by trade unions.
The president of the Irish Creamery Milk Suppliers' Association (ICMSA), Pat O'Rourke, who is seeking a "long pay freeze" in the food processing sector, said it was no longer tenable to exclude farmers from direct input into national wage negotiations.
Mr O'Rourke, whose Limerick-based organisation was severely disrupted by a long official dispute earlier in the year, said labour costs had to be capped.
"Talks on a new wage agreement are planned to commence in the near future, however a firm marker must now be put down that a long wage freeze is required - at least for the food sector," he said in a statement.
"The current national agreement, taking all the wage increases into account, added €140 million to the food sector wage bill, virtually none of this was recouped from foreign food markets, which is the dominant outlet for Irish food.
"I am convinced that a long pay freeze is required to bring our costs back into line with our international competitors. The food sector is truly global and we can no longer award pay increases which the market cannot bear.
"Representative organisations must hold firm on this line, otherwise there will be a financial millstone placed around the necks of our food companies and farmers. ICMSA will not budge from this line at the negotiations.
"The previous position at national agreements, where farm organisations had no direct input into wage negotiations, is no longer tenable. After all, it is our incomes and businesses that are at stake," he said.
"Unless there is an immediate cap on costs - including labour costs - faced by the food processing sector, the sector will rapidly lose international markets and jobs. Costs are increasing at over 10 per cent per annum, while returns from the market are static - if not falling."
Trade union sources indicated it would resist any attempt by the ICMSA to become directly involved in wage negotiations and said the food industry was well represented by the employers' organisation.