GII/WEXFORD CREAMERY MERGER A WELCOME DEVELOPMENT – FOCUS NOW MUST BE ON SMALLER PLAYERS

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GII/WEXFORD CREAMERY MERGER A WELCOME DEVELOPMENT – FOCUS NOW MUST BE ON SMALLER PLAYERS
18 Jun 2013

GII/WEXFORD CREAMERY MERGER A WELCOME DEVELOPMENT – FOCUS NOW MUST BE ON SMALLER PLAYERS

Dairy

IFA National Dairy Committee Chairman Kevin Kiersey today (Tuesday) welcomed the announcement that Glanbia GII would purchase Wexford Creamery, pending a favourable vote by Wexford Milk Producers shareholders and approval by the Competition Authority. He said that this move could further improve efficiencies and scale for the benefit of all dairy farmers in the region, whether they currently supply Wexford Creameries or GII.

Mr Kiersey said: “the last 18 months have seen major moves among the larger processors which have strengthened significantly the control by farmers of their industry, and have opened opportunities for further co-operation.”

“In the case of Wexford Creamery, it was clear that this smaller player with a strong cheese record had a strategic interest to join forces with a larger, more diversified player, for the good of both co-ops’ shareholder suppliers,” he said.

“There is still an urgent requirement for real efficiencies and extended co-operation, and the focus now must shift to smaller processors. The dairy farmers supplying them legitimately expect to see this year plans to deliver competitive milk prices and to secure their future livelihoods in the post quota era,” he concluded.

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