Dairygold unveils €50m fund plan

Dairygold Co-op has unveiled four instruments through which members will be asked to provide funding of about €50m towards the €120m of capital investment needed for expansion, plus a €50m increase required in working capital.

The co-op’s board of management has agreed that the investment required cannot be funded from operating surpluses alone, from existing reserves, or entirely from bank debt — so member funding is required.

A sustainable member funding plan has been agreed that will ensure that bank debt is kept at a level that will not put either the processing business or milk price competitiveness at risk, while also providing for share redemption for retiring members. In addition to bank and cash-flow funding, Dairygold has brought together an optional member’s loan note, a revolving fund, minimum shareholding and deferred payment mechanisms.