Farmers welcome Glanbia proposal

Farmers have given a cautious welcome to Glanbia’s plan to sell 60% of its Irish dairy business to Glanbia Co-op, creating a new Glanbia Ireland joint venture in a deal worth €112m.

In the deal, Glanbia co-op members will share a €100m spinout of Glanbia plc shares, while also creating a €40m member-support fund. Glanbia Ireland will be a €1.5bn diversified business 60% owned by farmers; it unites Glanbia Ingredients Ireland, Consumer Products and Glanbia Agribusiness.

IFA president Joe Healy said the €40m fund would offer Glanbia farmers some protection from global market volatility, saying the fund would “hopefully not be required for quite some time”. He said it was crucial the new joint venture would pay a commercially competitive base price at all times.