Shareholders vote for dairy joint venture

Shareholders in Glanbia Co-op opted for a new era in milk processing when they voted by 70.8% to 29.2% in favour of creating a joint venture dairy operations with Glanbia PLC which will see individual co-op members get their hands on a share-out of €160m on PLC shares.

It also paves the way for milk expansion after the EU quota system expires in 2014 and an investment of €180m, which is expected to bring an extra €500m per annum into the Irish economy by 2020, according to Ernst & Young.

The turn-out of 77% of those entitled to vote was described as staggering by Glanbia PLC spokesmen. Two more votes by co-op members are required to approve diminishing their shareholding in the PLC; paying for the milk processing costs associated with the new factory in Belview on the Kilkenny-Waterford border; and allowing for a spin-out of PLC shares among co-op members worth €160m at today’s share price.