Farmers vote to increase stake in creamery

A CO-OP of 350 dairy farmers has agreed to take control of Wexford Creamery from Dairy Crest at a cost of €9 million.

The transaction was approved by an overwhelming majority vote of 89% of farmer members at a meeting in Wexford.

It increases Wexford Milk Producers’ (WMP) share-holding in the creamery from 20% to 70% and reduces Dairy Crest’s share-holding from 80% to 30%.

WMP’s increase in share-holding facilitates the dairy farmers to own more of the milk processing supply chain and allows Dairy Crest to concentrate on its key brands.

Dairy Crest will continue to provide a range of services, including packing and distribution. It will also sell Wexford branded cheese in Britain on behalf of the creamery.

The WMP board unanimously recommended the share purchase, saying it serves the long-term interests of members.

WMP chairman Michael Vaughan said the approval of this transaction is great news for farmer members.

“This allows our members to own a majority stake in a quality cheese production business with an established route to market and later to have the option of becoming the 100% owner of Wexford Creamery,” he said.