Dairy Industry Ireland, a sub-division of Ibec, is hosting a two-day course for food industry executives, on the back of continued volatility in dairy prices

Ibec has developed the course together with Cork Institute of Technology (CIT) and Food Drink Ireland Skillnet, and is hoping it will increase employees’ grasp of how to address the challenges of the uncertainty in the markets.

Dairy Industry Ireland says that the price fluctuation is a result of a change in the EU’s price support mechanisms and increased globalisation of the industry.

CIT has previous experience putting on courses of this type, having worked with commodities company INTL-FCStone.

The organisers of the course claim it will highlight how to reduce price volatility, for the businesses themselves and their farmer suppliers.

It’s not just the dairy industry that will be discussed during the course; general food sector personnel will also receive an education in risk management.

Minister for Agriculture, Food and Marine Michael Creed favours the idea, saying that the “dairy industry clearly has to consider the prospect of volatility in the market-place and plan accordingly.

“Anything that helps the industry manage that volatility will ultimately help farmers,” added the Minister.

The main problems the industry faces are cashflow problems, planning and budgeting issues.

Declan O’ Connor, of CIT’s maths department, said: ”For the suppliers, their expertise is growing grass, calving the cows [and] proper herd management.

”These tools give certainty of payment and planning; that is what farmers want.”

Meanwhile, Dairy Industry Ireland director Conor Mulvihill believes that, despite the steps taken in addressing prices in the past, there is still a need for ”continued education”.

As part of addressing the price issue, Dairy Industry Ireland will also host a European-level conference in Dublin Castle in November, to discuss the same issue.