Withdrawal of Lakelands Milk Supply Agreement Correct Decision

IFA Dairy Chairman Stephen Arthur said the decision of the board of Lakeland Dairies to remove the proposed Milk Supply Management Scheme is the correct one.

“It was very disappointing to see such a scheme proposed in the first instance. IFA highlighted this on a number of occasions to both Lakeland Dairies management and the board. It has to be acknowledged that Lakelands took these concerns on board and abandoned the proposal.”

“Had it progressed, it would have had an adverse impact on many family farms supplying Lakelands who may have long-term plans in place to make their businesses more viable. With all the current uncertainty in dairy farming, such as with the proposed changes to Nitrates and the Food Vision report, dairy farmers need some certainty and must be able to depend on their processors to support them.

Stephen Arthur concluded, “this change is further evidence of the shifting dynamic in the dairy sector where expansion has now levelled off. This needs to be factored into the Minister’s thinking in relation to the Climate Action Plan”.

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