IFA President Tim Cullinan said the announcement that Glanbia Co-op is taking full control of Glanbia Ireland is a significant step for the business.
“This is a complex financial arrangement that will require careful scrutiny before members vote on the proposals. I would ask that Glanbia provide every opportunity for this plan to be discussed ahead of the SGM that will have to take place,” he said.
IFA will be seeking a meeting with Glanbia as soon as possible to discuss the proposals.
The IFA President said it’s important that suppliers will see benefits from this deal, if it goes ahead. “Glanbia has a three billion litre milk pool and takes in 270,000 tonnes of grain each year. It’s a major processor and buyer of what farmers produce so they should be a market leader in price,” he said.
IFA Dairy Chairman Stephen Arthur noted the comments by the Chairman of Glanbia Co-op John Murphy that ‘our ambition is to pay the best possible price for milk’.
“Whatever new structure may emerge, it has to return a leading price to the farmers. The business must seek to extract the maximum value from the market for the quality product that we sell to them,” he said.
IFA Grain Chairman Mark Browne said grain farmers would expect any new arrangement, if it goes ahead, to pay a leading price for the quality grains supplied by farmers.