Joint initiative set to address volatility facing dairy
Sector
THE Cork Institute of Technology (CIT) and Cork County Council have joined forces to develop a fledgling educational programme aimed at offering dairy farmers overcome the significant financial challenges faced by the sector.
While precise details of the programme have yet to be ironed out, it will predominantly focus on the continuing price and income volatility within the dairy sector.
This is an issue that has become an established and recognised challenge for the industry – with milk prices having fluctuated significantly over recent years.
According to the CIT low dairy product prices have in turn been the cause of severe financial problems for diaries and farmers alike and in some cases have led to extreme financial hardship.
“Meanwhile, extremely high prices result in product substitution, which can subsequently be difficult or impossible to reverse,” said a CIT spokesperson.
“There is also the danger that extreme volatility can hinder research and innovation. So having the appropriate tools and solutions to challenges can enhance stability and competitiveness for individuals and across the entire sector.”
Depending on particular circumstances these tools can include diversification, forward contracts, dairy derivative contracts and insurance to policy initiatives, all of which can be used to manage volatility the spokesperson said.
However, programme organisers recognise that no single one of these tools is suitable for all stakeholders and that their implementation is contingent on all within the sector understanding their use and role in managing price and income stability.
To that end they intend to hold a series of information and consultation workshops around the county over the coming weeks, one of which will take place at the Hibernian Hotel in Mallow on Wednesday, December 6 form 7.30pm – 9.30pm.
Dr Declan O’Connor of the CIT said the workshops would have two key objectives.
“The first will be to educate farmers about what volatility actually means. The second is to gather further information on whether there would be further appetite for a more indepth workshop on the topic of income and price volatility,” he said.
“We are also interested in seeking the views of various stakeholders, particularly farmers, on the content of these bespoke education offerings,” he added.
Anyone seeking more information on the initiative can email mathematics@cit.ie.
Cork County Councillor Bernard Moynihan encouraged farmers from across the North Cork regions to attend the free workshop in Mallow.
“It is no secret that dairy farming has been through some incredible highs and lows in recent years and with the abolition of quotas many young farmers are in need of direction if they are to remain within the industry,” said Cllr Moynihan.
“This is a wonderful initiative that will offer them an insight into coping with the market fluctuations and ensuring that their businesses remain viable into the future,” he added.