The Irish Creamery Milk Suppliers Association (ICMSA) is concerned that co-op sustainability schemes are locking dairy farmers into anti-competitive inputs pricing and harvesting their data.
ICMSA president Pat McCormack warned that while there is a very strong commitment from farmers to farm more sustainably, many are now becoming wary of measures which have very little to do with this aim at all.
McCormack said that dairy farmers are growing increasingly concerned and irritated by the practice of effectively compelling them to buy inputs from their own co-op in order to receive milk price bonuses under the “guise” of sustainability.
He said that “suspicion” was growing that many co-ops are using farmers’ sustainability ambition to lock them in on inputs.
‘Tight margins’
“Farming is a business of tight margins and farmers are entitled to buy their inputs from the most cost-efficient source they can find.
“Obviously, farmers will support their own co-op in the first instance - provided the price is competitive and provided the farmer is not being forced or compelled under various schemes to purchases inputs from their co-op,” McCormack said.
Dairy farm data is being harvested by co-ops, says the ICMSA. \ Oliver Edwards
The Tipperary farmer said that if co-ops want to pay bonuses to farmers for purchasing inputs from them directly, then they should be upfront about it and not hide it behind the pretence of sustainability schemes.
“If co-ops want farmers to buy their inputs from them, then their boards should concentrate on ensuring that those inputs are competitively priced - and not be trying to lock farmers in under any kind of guise.”
Data sharing
The ICMSA chief also highlighted that when it comes to the so-called data sharing arrangements in co-op sustainability schemes, farmers have a right to expect a certain level of privacy.
“We would think [we] are entitled to question the need for some of these data sharing arrangements.
“Milk processors have become very good at requesting and sharing farmer data, but when you ask a co-op about their own margins, for example, you’ll hit a wall of silence.
“We need to see a level of fairness and reality brought to these schemes,” McCormack concluded.
Read more
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The Irish Creamery Milk Suppliers Association (ICMSA) is concerned that co-op sustainability schemes are locking dairy farmers into anti-competitive inputs pricing and harvesting their data.
ICMSA president Pat McCormack warned that while there is a very strong commitment from farmers to farm more sustainably, many are now becoming wary of measures which have very little to do with this aim at all.
McCormack said that dairy farmers are growing increasingly concerned and irritated by the practice of effectively compelling them to buy inputs from their own co-op in order to receive milk price bonuses under the “guise” of sustainability.
He said that “suspicion” was growing that many co-ops are using farmers’ sustainability ambition to lock them in on inputs.
‘Tight margins’
“Farming is a business of tight margins and farmers are entitled to buy their inputs from the most cost-efficient source they can find.
“Obviously, farmers will support their own co-op in the first instance - provided the price is competitive and provided the farmer is not being forced or compelled under various schemes to purchases inputs from their co-op,” McCormack said.
Dairy farm data is being harvested by co-ops, says the ICMSA. \ Oliver Edwards
The Tipperary farmer said that if co-ops want to pay bonuses to farmers for purchasing inputs from them directly, then they should be upfront about it and not hide it behind the pretence of sustainability schemes.
“If co-ops want farmers to buy their inputs from them, then their boards should concentrate on ensuring that those inputs are competitively priced - and not be trying to lock farmers in under any kind of guise.”
Data sharing
The ICMSA chief also highlighted that when it comes to the so-called data sharing arrangements in co-op sustainability schemes, farmers have a right to expect a certain level of privacy.
“We would think [we] are entitled to question the need for some of these data sharing arrangements.
“Milk processors have become very good at requesting and sharing farmer data, but when you ask a co-op about their own margins, for example, you’ll hit a wall of silence.
“We need to see a level of fairness and reality brought to these schemes,” McCormack concluded.
Read more
Carbery to pay 1c/l bonus for sustainabilty measures in 2023
Kerry to pay incentives to farmers for emissions reductions
ABP launch bonus scheme for suppliers
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