{"id":1334029,"date":"2024-06-20T17:15:00","date_gmt":"2024-06-20T16:15:00","guid":{"rendered":"https:\/\/www.agriland.ie\/?p=1334029"},"modified":"2024-06-20T17:07:57","modified_gmt":"2024-06-20T16:07:57","slug":"warning-that-dairy-sector-could-face-massive-restructuring","status":"publish","type":"post","link":"https:\/\/lightsail.agriland.ie\/farming-news\/warning-that-dairy-sector-could-face-massive-restructuring\/","title":{"rendered":"Warning that dairy sector could face ‘massive restructuring’"},"content":{"rendered":"\n

Farm organisations have voiced their concerns over a move by Tirl\u00e1n to seek 150 redundancies that some believe could signal a “massive restructuring” of the dairy sector.<\/p>\n\n\n\n

The Kilkenny-headquartered co-op, Tirl\u00e1n, today (Thursday, June 20) confirmed that 150 jobs are likely to go across the organisation as a result of a new \u201ccost reduction programme\u201d.<\/p>\n\n\n\n

The president of the Irish Creamery Milk Suppliers Association (ICMSA), Denis Drennan, warned that this could be \u201cjust the beginning of a massive restructuring” of the dairy sector which he said is due to “Government policy”.<\/p>\n\n\n\n

Drennan believes the dairy sector in Ireland is “shrinking” because of “depressive policies and regulations”.<\/p>\n\n\n\n

\u201cThe 150 redundancies that Tirlan are seeking may be just the beginning of a wider sector restructuring.<\/p>\n\n\n\n

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“We are in danger of entering a period of decline of the sector that more than any other provided prosperity and economic prospects to rural areas all across the State.   <\/p>\n<\/blockquote>\n\n\n\n

“The tragedy, and in time it will be judged as exactly that, is that it was perfectly possible to move smoothly towards our environmental targets while preserving our world-leading dairy sector and the rural economic bulwark it represents. ICMSA has on numerous occasions outlined how and why we should do that,” Drennan said.<\/p>\n\n\n\n

Dairy sector<\/h2>\n\n\n\n

Separately the president of the Irish Farmers’ Association (IFA), Francie Gorman, also said the move by Tirl\u00e1n to seek redundancies was a “direct result of EU and Government policies”.<\/p>\n\n\n\n

Gorman highlighted the contribution that the dairy sector makes to the “economic and social sustainability of rural Ireland”.<\/p>\n\n\n\n

But he also pointed to how margins are being squeezed by Government policies which he believes are focused on “curbing” production and said the tightening of the existing Nitrates Derogation<\/a>, together with increased regulation and cuts to supports, were “making life more and more difficult”.<\/p>\n\n\n\n

Gorman said: “This morning\u2019s announcement will be concerning for Tirl\u00e0n staff and their families. <\/p>\n\n\n\n

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“Morale is also very low amongst farmers. There is so much policy uncertainty that farmers cannot make plans. This must be addressed.<\/p>\n<\/blockquote>\n\n\n\n

“Today\u2019s announcement must be a wake-up call for the Government to focus on the economic well-being of the sector.”<\/p>\n\n\n