Dairygold offers phased share deal
Following a long-running dispute over a new milk supply agreement, some farmers have moved their supply to other creameries, notably Arrabawn in Tipperary.
Dairygold wrote to several farmers last year to say they could transfer their shares for loan notes, redeemable once they reached 65 years of age.
The co-op is now offering to convert that loan stock into cash in five annual increments of 20% of the overall shareholding value. The first payment would be made at the end of year five after their departure; and the final instalment would be paid at the end of year nine after their departure.
Dairygold said that this incremental process would be superseded should the former member reach the retirement age of 65 first or during the repayments.
One former supplier said he had not received notice of Dairygold’s revised position, but added that he would not accept the offer. He wants to be given the chance to make his case to the board before formally ending his membership, a right he said is written into the co-op’s rules.
