Vote of confidence for Dairygold
That the entire operation is to remain within co-operative farmer ownership is very positive, and this should continue to be the policy.
Milk producers, who in the past found it fashionable to go the PLC route with their co-ops, have had reason for second thoughts, when they find proxy votes decide their fate, and outside investors demand their return and dictate what the farmer will be left with. With one exception - Kerry Group - conversion of dairy processing co-ops to PLCs has not served farmers well. It was always going to be difficult to marry the conflicting interests of the dairy farmer wanting to get the best return for milk supplied and the outside investor demanding the optimum return on his investment in the PLC.
For the greater part, the farmers have been the losers, and the promises and expectations farmers had when they voted for the PLC route now make disappointing.
That Dairygold has decided against the PLC route - despite a lot of speculation to the contrary - is to be commended. However, streamlining the Dairygold operation is prudent.
Retailing and property are growth sectors of the economy. Their strong performance should strengthen the ability of the co-op to serve farmers, through payment for milk and other produce, while maintaining the true spirit of the co-operative movement which has, to date, served farmers far better than most of the PLC structures.
Good luck to chief executive Jerry Henchy, chairman John Walsh and his board of directors, and to the farmers of Munster.
