Glanbia Co-op move gets IFA approval

THE PROPOSAL by Glanbia Co-Op to purchase the Irish business of Glanbia Plc has been described as a “welcome development” by Kilkenny IFA President John Bryan.

“The move holds out the prospect of outright farmer ownership of Ireland's largest milk pool as well as much greater direct farmer control of the Irish dairy industry, facilitating greater consolidation and cost efficiency”, he said this morning (Wednesday).

Mr Bryan said he and Dairy Chairman Kevin Kiersey would be meeting with Glanbia tomorrow (Thursday) morning to review the details of the negotiations and their implications for farmers both within Glanbia and nationally.

The IFA would insist that the Co-op would prioritise the best interest of farmers, including the delivery of strong, viable product prices, he stressed.

The IFA President added: “The move by Glanbia Co-op to acquire the Irish interests of Glanbia Plc, including consumer products, liquid milk, dairy ingredients and agri-business, has far-reaching implications for the entire Irish agri-food sector.”

“I understand the negotiations between the Co-op and the Plc are progressing well and I believe it is in the best interest of farmers that these negotiations reach a satisfactory conclusion.  Any deal will, of course, require the approval of both Co-op and Plc shareholders over the coming months.

“But subject to the satisfactory agreement on terms, I believe the balance of interests for Glanbia Co-op shareholders and suppliers, lies in regaining full control of the entire Irish business, even though this would require a reduction of the Co-op’s stake in the Plc, which would then control only the non-Irish assets.”

National Dairy Chairman Kevin Kiersey added: “I see positives in this move by the Co-op because it would end Plc decision-making on the milk price, which farmers believe has not worked in their favour, and would bring under direct farmer control over 80% of the national milk pool.”

“A successful deal would also provide an important impetus to drive the necessary consolidation and cost efficiencies required in the Irish dairy processing sector under farmer ownership and control.”