Co-op News October 2019: Sustainable Development

IRELAND
Row continues
over milk prices paid
by Irish co-ops
The row over milk prices paid by Irish
co-ops to dairy farmers continues, with
sector leaders demanding to know why
payments are falling.
Tom Feelan, chair of the national
dairy committee at the Irish Farmers
Association, has called on co-ops to
address farmers’ questions as to why are
milk prices falling, and why have they
fallen so much behind European levels.
“Is it because of Brexit, is it because
of markets, is it because of supplies?”
he asked. “Why is the gap between the
purchase price index and the price co-ops
pay farmers widening? Farmers need
answers, they need to plan ahead.”
Mr Phelan said average EU dairy market
returns, spots and futures have all been
inching up in recent weeks, and gave the
example of two large European co-ops –
Friesland Campina and Arla – which are
keeping prices steady.
“So why have Irish co-ops been cutting
milk prices several times since the
beginning of 2019?” he asked. “While
overall milk price levels have eased over
that period, European averages have
clearly stabilised since March, yet Irish
prices have continued to dip.”
He added: “Co-ops must send a clear
signal to farmers that they will hold the
milk price to year-end.”
Dairy co-ops blame uncertain product
prices brought on by excess supply
for the problems, with a Dairygold
spokesperson saying: “Dairy markets
have been challenging and uncertain,
with butter returns falling significantly,
far outweighing the marginal increases in
powder prices.
“More recently, cheddar cheese returns
have been negatively impacted, primarily
due to the uncertainty over Brexit.
Regrettably, a downward milk price
adjustment is necessary.”
The spokesperson added: “Dairygold
will continue to monitor market
developments on a monthly basis
and remains vigilant with regard to
maximising the commercial return and
ensuring operational efficiency.”
Ornua, another co-op which has been
revising prices downward, also blames
a fall in cheese and butter prices.
USA
US credit unions to include diversity as the eighth co-op principle
Diversity, equality and inclusion will
become a co-operative principle for credit
unions in the USA.
The Credit Union National Association
(Cuna) voted in favour of a resolution to
adopt the principle, building on the work
of former board chair of Cuna, Maurice
Smith, CEO of Local Government FCU in
Raleigh, who appointed a working group
to examine what the movement could do
to drive diversity.
In February, which is commemorated as
Black History Month, Mr Smith called on
US credit unions to include diversity and
inclusion as a co-operative principle.
While co-operative principles one and
two – open and voluntary membership
and democratic control – imply diversity
and inclusion, he said, there is no explicit
emphasis on these issues.
“The credit union way is, and has
always been, keenly fixated on members,”
he wrote at the time. “Therefore, it stands
to reason that all members should be
engaged in the movement.
“Still, there is more to diversity and
inclusion than financial access for
members. We need to hold each other
accountable for equality, equity, and
opportunity for members, volunteers, and
credit union professionals.
“It must be everywhere from the
grassroots of our communities to the top
of our credit unions or we will not fully
serve our purpose.”
The co-operative principles date back
to 1844 when they were set out by the
Rochdale Pioneers. In 1937 they were
adopted by the International Co-operative
Alliance, which updated them in 1966
and 1995.
“Diversity, equity and inclusion are a
part of what credit unions do each and
every day. Our co-operative principles
have guided us to fulfil our mandate and
be a resource to all consumers – no matter
their income, race, religion. But we’re
committed to doing more,” said Cuna
president and CEO Jim Nussle. “In passing
this resolution, we’re continuing our work
to embrace diversity, equity and inclusion
efforts within our organisation while
we support measures throughout our
movement and across all co-operatives.”
20 | OCTOBER 2019