Glanbia to pay €5.6m to shareholders
Having consulted widely with its representative structure, the co-op’s board and council recommended a series of measures to a special general meeting of the society in Kilkenny.
Shareholders voted in favour of two measures - the payment of a milk bonus of 1 cpg for 2005 and the introduction of a patronage scheme for farmers who trade with Glanbia Agribusiness for feed, fertilisers, chemicals, veterinary supplies and grain. In addition, and pending approval by the annual general meeting in May 2006, shareholders are to receive an increased dividend from 1% to 2%. The board of the society has also decided to implement a 2006 revolving share plan on a voluntary basis, with 30% capital growth envisaged over five years.
Chairman Michael Walsh said the co-op is mindful of changing circumstances in farming and is hopeful these initiatives will provide a measure of support at this time.
Meanwhile, IFA Dairy Committee chairman Richard Kennedy has kicked off a series of meetings with co-ops. He has already met with the respective chairman and chief executive of Dairygold and Arrabawn. He expects to meet with all the co-ops and the Irish Dairy Board before the end of the month. He said the single most important issue on his agenda was the necessity for co-ops to set a viable milk price target and work hard to cut costs and add value in order to deliver it to farmers. They can no longer afford a situation where they are paid whatever is left after costs have been covered.
