Co-operatives sourcing milk from Welsh dairy producers have a long way to go to match the performance of milk buyers in the Irish Republic, according to three NFU Cymru members from west Wales who have just returned from a fact finding trip to Wexford.
"Whether that goal can best be achieved through the co-operative or public limited company route is a question which needs careful examination," said Clive Mills, the Ceredigion representative on the NFU Cymru Milk Committee, on his return today.
Mr Mills, who runs a dairy herd at Ffynnonfair, Pentrebach, Lampeter, was one of the three NFU Cymru office holders who travelled to Wexford to weigh up the advantages and disadvantages of milk buying businesses owned by farmers or shareholders.
Carmarthenshire and Pembrokeshire County Chairmen, Peter Francis and Alan Prichard, visited Wexford Creamery and Glanbia's factory at Ballyragget with representatives of Agri-net Works, a project designed to facilitate the needs of farmers and rural businesses in Pembrokeshire, Carmarthenshire and Ceredigion and in Wexford.
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Glanbia is Southern Ireland's biggest milk buyer, sourcing 35% of the Irish milk pool. The company is the result of the 1990 merger between Avonmore and Waterford dairies in 1990 and is now one of three plcs processing half the national milk supply.
By contrast, Wexford Creamery has retained its co-operative status, although 80% of the business is owned by Dairy Crest. Wexford Milk Producers (WMP), the co-operative formed in 1972, owns 20% of the business. This arrangement is similar to the one at Haverfordwest Cheese Ltd where First Milk has 20% ownership and Dairy Crest 80%.
When comparing what he saw in Ireland to the situation in Wales, Clive Mills said he felt the element of trust is missing in the UK. "Our co-operatives are broker co-operatives dominated by plcs who wave a big stick over us and tell us what they are willing to pay us for our milk. It is a case of 'take it or leave it', if we don't like it the feeling is that they will get their milk from elsewhere. Although co-operatives in the UK were moving into joint ventures, progress was slow. We are not far enough down the line to take advantage of it."
