Ireland’s second dairy producer organisation (PO), The Munster Dairy Producer Organisation (MDPO) has been approved by the Department of Agriculture, Food and the Marine (DAFM).
Limerick-based barrister and agribusiness consultant, Ciaran Dolan, who made the submission on behalf of the new entity, confirmed to Agriland that he received “formal written approval” from the department this evening (Friday, April 19).
Dolan, a producer organisation facilitator approved by DAFM, has already been involved with the establishment of two beef producer organisations.
Munster Dairy Producer Organisation
The newly approved producer organisation has been spearheaded in recent months by a group of Kerry Group milk suppliers.
The suppliers, who held meetings and participated in protests last year, are unhappy at the milk price being paid by Kerry.
As their current contracts with Kerry Group are due to expire at the end of 2025, some suppliers have moved to establish a producer organisation which would negotiate with milk purchasers on behalf of suppliers.
A steering committee was established last year to advance the new group.
During an online meeting in January, which was attended by over 200 people, Ciaran Dolan presented an overview of the initial set of rules that he had drawn up.
The core mission and objective of MDPO is to collectively strengthen the position of its members in negotiating and agreeing contracts, including price for the supply of milk and for the purchase of farm inputs and services.
That meeting heard that once the DAFM approved the establishment of the producer organisation, membership forms could be distributed and a website would also be developed.
Dairy
In January, the department granted recognition to The Irish Organic Milk Suppliers Co-op (IOMS), making it the first dairy producer organisation in the country.
There are currently an estimated 70 to 80 dairy farms operating as organic.
Organic milk currently represents around 1% of the total milk pool from Ireland but some producers have repeatedly expressed concerns over the viability of the sector.
IOMS was formed last year when a large group of Ireland’s organic dairy farmers came together to address issues which they had identified in the sector.
Cost inflation and static milk prices have led to growing frustration among producers.
The organisation claims that it represents the majority of Ireland’s organic dairy farmers.