Glanbia Co-op’s proposed purchase of Glanbia Plc’s Irish interests, which accounts for 80 per cent of Ireland’s milk pool, could lead to greater farmer control of the national dairy industry, the IFA believes.
But the Association also stressed that the details of any proposed acquisition will be critical to this potential ‘new dawn’ for dairy farming achieving reality.
The Co-op, which currently has a 54.46 per cent stake in the plc, has entered talks with Glanbia regarding “a unique opportunity to transform” the business, according to a Glanbia spokesperson.
Discussions regarding the plc’s ‘Dairy Ireland’ operation, which accounts for Glanbia’s Dairy Ingredients, Consumer Products and Agribusiness divisions (along with business property), are said to be “progressing well”.
However, at the time of writing, a Glanbia Co-op spokesperson added: “There is no guarantee that these discussions will result in a transaction being concluded.”
Speaking to The Munster Express on Friday last, IFA Dairy Chairman Kevin Kiersey struck a positive yet pragmatic note about a move which could revolutionise the dairy sector.
“When the news broke about this, I have to admit that it took me by surprise,” he said, 24 hours after both he and IFA President John Bryan met with Glanbia to discuss the proposal.
“And while I welcome the proposal in principle, the details of what this acquisition would entail, if agreed, are obviously the key considerations as far as farmers are concerned.
“But there is absolutely no doubt that what’s currently being discussed represents a once in a lifetime opportunity, which is why I hope the benefits of any agreed deal will be made plain in its detail.”
See The Munster Express newspaper for full story.