Study says Irish invest less in dairy research

Dairy processing co-operatives in Ireland invest less in new product development than their counterparts in other countries, according to a recent KPMG study. ICOS, the Irish co-operative body commissioned the industry analysis, which notes that spending on R&D was an area of weakness.
“The analysis shows that investment in new product innovation is low when compared with our international peer companies,” ICOS says. However, using focused innovation and marketing can change the outcome, the study says. Institutes such as Food for Health Ireland are also working to correct this imbalance.
Other aspects of the KPMG study were seen as more favourable. Return to Irish milk farmers and milk processing costs “compare favourably” with international peers, the study notes.
Concerns were expressed about the seasonality of the largely grass-based Irish dairy industry. Processors struggle to match the return per litre of international competitors, as milk supply at peak season is channeled into long life commodity products.
“Significant consideration will need to be given to peak milk supply and related working capital finding if we are to provide a more favourable return to enable better R&D, investment and marketing,” ICOS comments.