KPMG Study Reveals Profit Problems at Co-Ops
A KPMG study into the Irish processing sector reveals that low profitability of the sector may force it to switch to a different milk pricing structure. The report, conducted on behalf of the ICOS (Irish Co-operative Organisation Society) outlined a number of key areas of competitiveness that the sector needs to address.
The €450,000 study was conducted in the wake of the Food Harvest 2020 report. The Food Harvest 2020 report outlines a number of goals for the food and agriculture sectors including a target of a 50% increase in output for the Irish dairy sector.
“The analysis shows that investment in new product innovation is low when compared with our international peer companies,” said the ICOS. The report also had some good to say about the sector most notably the positives that are gained from working with other co-ops.
In a copy of the report’s key findings seen by the Farming Independent the authors state that “profitability in the Irish dairy sector appears low compared to international peers”.
ICOS chief executive Tom O’Callaghan said, “The analysis conducted by KPMG has been invaluable in that it has laid out the facts in relation to the actual position on the Irish dairy industry in its global context. The work to date highlights the tangible efforts and achievements made to date, while demonstrating that there is no room for complacency.”
