IFA President John Bryan today (Wed) said the proposal by Glanbia Co-op to purchase the Irish business of Glanbia Plc is a welcome development which 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.
Mr Bryan said he and Dairy Chairman Kevin Kiersey would be meeting with Glanbia on tomorrow (Thurs) morning to review the details of the negotiations and their implications for farmers both within Glanbia and nationally. He said IFA would insist that the Co-op would prioritise the best interest of farmers, including the delivery of strong, viable product prices.
The IFA President said: “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.”
John Bryan said: “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.”
“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,” he said.
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,” he concluded.