Boards recommend merger of two co-ops
Each board unanimously voted to recommend merger proposals to their respective membership.
The move is designed to be in the best long-term interests of shareholders throughout the combined catchment areas of both co-ops, the boards stated in a joint statement yesterday.
Centenary and Thurles boards voted separately on the issue. Both co-ops will write to their members to outline the benefits involved. If the merger is approved, the new society would have a milk pool of 94.5 million litres of milk and a joint turnover of some €62m per annum.
The proposed merger is aimed at addressing combined business and operational costs and to meet head-on the increasing pressures arising from the ongoing CAP reforms. Under the proposals, Centenary and Thurles would merge their businesses, organisations and management with the objective of leading to enhanced efficiency, a reduction in underlying costs and greater co-operative strength within the increasingly competitive dairy industry.
The proposal to merge will be subject to the approval of the majority of both co-ops’ members.
Centenary chairman Jim Maher said the success of the dairy industry depends on the willingness of all stakeholders, producers and processors to work together, to create new efficiencies and to maximise the returns available to producers from the markets.
“We now see a proposal for two of Ireland’s longest established co-operatives to come together to work as one for the future.
“This is a necessary step in growing our respective businesses and in safeguarding the viability of co-operative dairy farming and its ongoing contribution to rural economic development.”
Thurles chairman Jackie Cahill said, given the major changes taking place within agriculture, producers have been required to gear up their operations, to increase their scale and to invest for the future, or to exit dairying altogether.
