IFA supports Glanbia share sale proposal

IFA has welcomed the proposal to allow existing milk suppliers who are not Glanbia co-op members to buy shares in Glanbia Co-op for €5 apiece.

IFA president, Eddie Downey, said it would give them benefits of membership, including producer support and participation in decision-making.

“Equally, where non-active shareholders wish to dispose of their co-op shares, there is now a straightforward mechanism, with a guaranteed price, through which to do so. However, given the funding pressures that will already be faced by existing milk suppliers, IFA believes that there must be flexibility in the scheduling of the payment for co-op share purchase”.

Mr Downey said last week’s proposals from Glanbia also offered the possibility for cash-flow, or money for expansion, from the strong market value of Glanbia plc, via the proposed share spin-out. Included in proposals is creation of a support fund for co-op members; Mr Downey said this fund must be available to all Glanbia members, not just to milk suppliers.

Mr Downey said: “IFA is clear that the member-support fund cannot be used to dilute the transparency of the milk price, which must continue to be based upon market returns”.

He urged everyone who will vote in mid-May to fully inform themselves of the impact of the proposals on them.