Following the announcement this morning (Wednesday, November 10) that Glanbia Co-op will move to take full ownership of Glanbia Ireland, farm organisations are highlighting the place of farmer-suppliers in this proposed new arrangement.
The Irish Creamery Milk Suppliers’ Association (ICMSA) has stressed that the interests of farmer-suppliers “must be the starting and finishing point” of the transaction.
Pat McCormack, the association’s president, has said that the ICMSA will “look carefully at the proposal before coming to any decisions on whether to recommend it or not”.
“Though there are obvious differences with other buy-outs and various mergers, there’s enough in common to justify our association taking it’s standard attitude and that is to ask what is the long-term interests of the farmer-supplier.
“That’s our starting point and our finishing point. With due respect to both the plc and Glanbia Ireland, we will consider this in terms of how it affects the farmers,” McCormack stated.
He continued: “It’s not as simple as giving the farmers the room to decide their own milk price; we have seen over in the UK how a deceptively simple slogan like ‘Taking Back Control’ is actually a much more complex proposition than seemed at the time.
“There will be arguments for and arguments against, and ICMSA will decide on a position after carefully looking at both,” McCormack concluded.
Both Glanbia Co-op and Glanbia plc announced details of the proposed transaction this morning.
The two parties signed a non-binding agreement which will see the co-op take full ownership of GI.
Currently, GI operates as a strategic joint venture, 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.
Subject to the successful conclusion of contract negotiations and the relevant shareholder approvals within both the plc and the co-op, the latter proposes to pay €307 million to acquire the plc’s 40% shareholding in GI.