Dairygold Co-op vote on restructure
The board of directors is recommending that non-core, non-farming related businesses - Consumer Foods, 4HOME and Alchemy Properties - be reorganised into a wholly owned subsidiary of the Co-op.
Shareholders are assured there would be no change in the 100% ownership of the business and assets by the co-op and its members.
Milk processing and agri-trading would remain core farming businesses.
Dairygold's management has emphasised that the proposed reorganisation is basically a housekeeping exercise.
Some 5,000 A1 shareholders - those active as milk suppliers or traders with the co-op - can vote today.
Many of them are likely to be swayed by the newly stated objective to set up the non-core businesses "to make an unassailable contribution to the milk price".
The meeting is due to start at 11.30am at Dairygold's Powder Store in its Mallow milk processing facility.
One of the resolutions before the meeting is to approve the transfer of the non-farm businesses into a wholly owned subsidiary; the other is to amend the Co-op's rules to facilitate this restructuring.
Chief executive Jerry Henchy commented on speculation concerning the plans: "Some have said that a stock market flotation is in the offing and others have speculated that the upcoming Special General Meeting might entail fundamental changes in the ownership of the business. Neither is the case," he said.
Mr Henchy said the aim is to grow and develop the business in such a way that Dairygold can maximise the income of members.
"We want to develop our non-core assets into a growing and sustainable profitable business, while ring-fencing the core farming business from any unacceptable risk.
"We want to set up the non-core businesses to make an unassailable contribution to the farming community in the future, and we do not want to dilute members' ownership of the current asset base. But no more can be done until we have placed our non-farmer related assets into a wholly owned subsidiary."
Mr Henchy said the Dairygold board of directors and senior management unanimously support today's proposal.
Dairygold chairman John Walsh said there has been strong support for the proposed restructuring at regional meetings of co-op members. "Currently, Dairygold's businesses are divided out between 62 wholly owned subsidiaries.
"Supporting the resolutions will allow Dairygold to hold its non-core businesses of Consumer Foods, 4HOME and Alchemy Properties into a wholly owned subsidiary instead of being split up into the 62 as it is presently."
