Ex-Dairygold suppliers seek to cash in shares

Cashing in the shares of defecting suppliers would cost Dairygold less than €1m, says one farmer who now supplies Arrabawn co-op.

Ex-Dairygold suppliers seek to cash in shares

West Cork farmer Ned McCarthy is one of around 60 ex-Dairygold suppliers facing expulsion from the co-op.

The farmers say they may have to wait until they reach 65 for their former co-op to reimburse shares they bought during their years of membership.

“The rules clearly state when someone is expelled they can take the value of their shares, unless the company is in financial jeopardy,” said Mr McCarthy.

“I find it hard to believe the co-op would be placed in jeopardy by repaying these shares, which come to well under €1m.”

Dairygold says it has begun a process under co-op rules relating to a small number of its former milk suppliers.

The society wrote to those who transferred their milk supply to another processor, inviting them to attend a board meeting, to discuss their membership.

Dairygold said no decision has yet been made, and each individual case will be considered in the light of the comments, submissions or observations put forward by them.

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