The opportunity for a farmer-controlled re-alignment of the milk processing sector in the northern half of Ireland arises from the current need of LacPatrick Dairies to seek a new business partner, according to independent MEP Marian Harkin.

Harkin expressed this view when she suggested that a merger of the co-operatives in the border area was long overdue.

“The challenges of doing business with an ever-concentrating customer base, combined with the challenges of Brexit, require an effective and timely response from the farmer-controlled border area co-operatives,” she urged.

“For decades the Irish Co-operative Organisation Society (ICOS) had recognised the need to build on the unitary strength of the co-operative movement.”

However – in the past – ICOS has seen private enterprise taking over a border area co-operative, which logically should have become part of a neighbouring farmer-controlled enterprise, she said.

The co-operative movement founded by Sir Horace Plunkett had a basic tenet that the co-operative method was a mechanism to deliver ‘self help through mutual help’ and – in the challenging times ahead – there was no better structure to protect the interests of farmers, she said.

Harkin called on the chairmen and chief executives of the cross-border co-ops to immediately meet under the auspices of the ICOS to ensure that a world class co-op would be created, together with LacPatrick, to service farmers north and south of the border for the hard years ahead.

LacPatrick ponders merger

Harkin’s comments follow on from the news last week that the board of LacPatrick Dairies is considering a merger “to consolidate the dairy industry”.

In the statement, the chairman of LacPatrick Dairies, Andrew McConkey, said: “The board of LacPatrick Dairies met on Tuesday, April 17, and it has agreed on pursuing a number of strategic options with a view to identifying the best way forward that is in the interest of its suppliers, shareholders, staff and customers.

This may or may not include partnerships, joint ventures, mergers and other opportunities to consolidate the dairy industry.

“The decision by the board of LacPatrick comes following a number of approaches from international and national companies from the sector in recent months.”

It is understood that the move is not financially driven as the company has stated on numerous occasions that it is on a strong financial footing.