Heads not hearts: Senator John Paul on Glanbia

GLANBIA Co-operative Society members need to be “ruled by their heads rather than their hearts” and must be furnished with an independent, forensic analysis of the state of its Irish operations before a decision is made on any buy-out, Fine Gael Senator, John Paul Phelan, has urged.

 

“Now is a time for cool heads and for the Co-op to really tease out if this is value for money for farm families and in the long-term interest of the 4,250 suppliers to Ballyraggett or not,” the 31 year-old Senator, who comes from a farm family in South Kilkenny, said.

 

“This has the potential to be a good deal for farmers in the Glanbia area and the dairy industry in Ireland and drive the rejuvenation of the entire dairy sector. But it has to be at the right price for the Co-op members, their families and the dairy community.

“Glanbia has been a two headed monster of sorts over the years. As a PLC it has been focused on delivering profits to shareholders but this has been a source of much frustration to farmers who, as members of the Co-op, have seen the PLC lag behind in terms of milk prices.

“Glanbia has been pulled and dragged in different directions on a local and global basis. Farmers want to go back to the grassroots. But we have to ensure that any such deal would not leave the PLC with the cream of the crop and the Co-op, its members and already struggling farm families with the dregs,” Senator Phelan said.

“The industry must strive to reduce its processing costs. We also need the market to consolidate. They must come from the one source so we don’t have a variety of interests competing against one another,” he concluded.