McCormack: Arrabawn liquid milk decision not surprising

The decision by Arrabawn to exit the liquid milk market is disappointing but no surprise according to a Tipperary farm leader.

ICMSA President Pat McCormack says the move by the Nenagh based agri-business is a sign of the challenges facing both milk producers and processors.

Around half of the 110 people employed at their processing plant in Galway will transfer to the new owners Aurivo. The remainder will be offered redeployment within Arrabawn.

Greenane farmer McCormack says the sale is a sign of the times.

“I suppose we’ve seen the margins erode for both the farmer and for the processor in that industry.

“Its extremely competitive and I suppose you’re at the mercy of…..95% of your sales to five different large retailers. We’ve gone away very much from the corner shop in milk sales.

“Disappointment though I’d have to say as a Tipperary famer to see another entity move from a section of their business but it’s a sign of power up along that supply chain.”