Arrabawn Co-operative Society Ltd., has organised a series of information meetings for its shareholders over the next fortnight to discuss a potential merger with Tipperary Co-op.
Arrabawn has written to shareholders to invite them to the series of meetings adding that it welcomes “your thoughts and feedback” and will answer any questions which may arise.
Last month, Arrabawn Dairy Co-operative and Tipperary Co-operative Creamery confirmed that they had entered preliminary exclusive discussions regarding possible integration of their operations, including potential amalgamation.
A joint statement from both businesses to Agriland at the time said that the “exclusive exploratory process” has been undertaken by the neighbouring co-ops with a view to creating a stronger entity within the Irish dairy industry.
The milk pool of both would place a combined entity in the top four co-op processors in Ireland.
Any change in structure would be subject to due diligence and require approval of the board of directors and ultimately the milk suppliers of both Arrabawn Co-op and Tipperary Co-op, as well as regulatory approvals.
Arrabawn meetings
Chairperson of Arrabawn, Edward Carr has written to shareholders inviting them to any of the series of information meetings scheduled.
These will take place as follows:
- Thursday, October 17: Abbey Court Hotel, Nenagh, Co. Tipperary;
- Monday, October 21: Charleville Park Hotel, Co. Cork;
- Tuesday, October 22: Talbot Hotel, Carlow;
- Wednesday, October 23: Loughrea Hotel, Co. Galway;
- Thursday, October 24: County Arms Hotel, Birr, Co. Offaly.
All of the meetings being at 8:00p.m and are open to Arrabawn shareholders.
Arrabawn Co-op saw a turnover of €403 million in 2023, which was down around 20% from the €505 million reported in 2022.
The co-op, which is headquartered in Nenagh, Co. Tipperary and has around 1,000 member farmers, also declared a record operating profit of €10.77 million in 2023, which was up 12.5% year-on -year.
Meanwhile, Tipperary Co-operative said that a “turbulent and challenging year” in 2023 saw its value of sales decrease by over €100 million, from €420 million to €304 million, a drop of around 25%.
In its annual report for 2023, the co-op said that 2023 was a difficult year for dairying nationally due to falling market returns and high input prices, which was compounded, in Tipperary Co-op’s case, by exceptional operating challenges in its milk processing business during the year.
The business also reported an operating loss of €6.8 million for 2023, compared to a trading profit of €6.9 million for the previous year.