O’Leary urges Wexford milk co-op to vote ‘yes’ to Glanbia sale deal
He said the deal negotiated by the co-op’s board was fair and would meet the future needs of Wexford milk suppliers. It should bring clear financial benefit to Wexford milk suppliers, he added.
Mr O’Leary was also a keen supporter of Glanbia Ingredients Ireland Limited being formed.
At the time of its launch, he advised milk suppliers that the proposed new joint venture company would provide an important platform for enabling structural change for the entire milk sector.
“Glanbia Ingredients Ireland Limited has the potential to attract alliances with existing co-operatives that will create further economies of scale and the potential to allow for a more coherent approach to export marketing of products.”
The ICOS president, who is also chairman of Dairygold, said the deal would help Wexford retain its identity as a co-operative.
“The society’s proposed alliance with Glanbia Ingredients Ireland Limited provides greater access to a wider mix of product and marketing channels than is now open to them,” said Mr O’Leary.
“This reality, when linked to the scale and economic strength of GIIL, should provide Wexford milk suppliers with an improving milk price performance in the longer term and improved market security. It will also bring necessary investment and scale to Wexford Creamery at a level not possible for Wexford milk producers on a standalone basis.”
This deal builds in certain guarantees in respect of equal milk price, and protects the existing stainless steel capacity in Wexford Creamery for WMP milk suppliers, he said.
“The proposed deal provides a sustainable basis for the future development of the relationship between Wexford Milk Producers and Glanbia Ingredients Ireland Limited. I am calling on all members of Wexford Milk Producers to support this proposal by voting ‘yes’ at the special general meeting,” said Mr O’Leary.
