ICMSA to consider Glanbia Co-op proposal

THE proposal by Glanbia Co-op to purchase the Irish business of Glanbia plc will be discussed by the Irish Creamery Milk Suppliers Association (ICMSA) at a meeting in Kilkenny on Monday night.

County executives that comprise the ICMSA south-east region are expected to adopt a position on the proposal.

The ICMSA has yet to decide a definitive position on the Glanbia Co-op, move, which could have a significant structural impact on the entire dairy industry.

ICMSA Dairy Committee chairman Pat McCormack said its support will rest on whether the proposal has meaningful and practical benefits for milk suppliers.

“It is time those people on whom the whole dairy sector rests got some proper consideration and were not treated as some kind of afterthought,” he said.

The Irish Farmers’ Association (IFA) has already welcomed the Glanbia proposal with John Bryan, president, saying it holds out the prospect of outright farmer ownership of Ireland’s largest milk pool.

It also holds out the prospect of much greater direct farmer control of the Irish dairy industry, facilitating greater consolidation and cost efficiency, he said.

Mr Bryan said the IFA would insist the co-op prioritise the best interest of farmers, including the delivery of viable product prices.

IFA Dairy Committee chairman Kevin Kiersey said the co-op’s move would end plc decision-making on the milk price, which farmers believe has not worked in their favour, and would bring under direct farmer control more than 80% of the national milk pool.

“A successful deal would also provide an important impetus to drive the necessary consolidation and cost efficiencies required in the Irish dairy processing sector under farmer ownership and control,” he said.

Pat McLoughlin, president, Irish Co-operative Organisation Society (ICOS) said the proposal was a positive development for the wider dairy sector.

The transfer of ownership of the Irish interests of Glanbia plc, to the co-op would provide a boost to the discussions under way on the reorganisation of the co-operative sector, he said.