Why Glanbia vote next week holds many dangers for farmers
The next Glanbia vote on Nov 28 holds many dangers for farmers.
We must learn from the Kerry Group experience where they haven’t given a commitment to invest money into expansion for their farmers and are paying poorer milk prices than us because it is an investor-led company.
What effect will this have on their children and their grandchildren’s future in farming?
Milk price is vital to all us farmers as a 2 cent a litre cut in milk price to a 100,000 gallon producer would mean a cut of over €9,092 in our milk cheque.
One cent increase in milk price is equal to €20 million to farming. Now I ask you? Who will an investor-controlled entity pass that increase on too? Farmers? I think not.
You must ask yourself these questions. Would you sell a stake in your own farm?
Remember what investors have done to our country during the Celtic Tiger and they could do the same to our co-op if they get control, which many of our forefathers set up for the benefit of us farmers.
It is only a farmer-controlled plc that will deliver for farmers.
An investor-controlled plc will only deliver for investors firstly.
Analyst John Mullane at Dolmen Stockbrokers is quoted as saying recently that the sale of the stake by the co-op members would be beneficial to investors. Proof of the gains to be made by investors outside of farming if this vote was passed. I estimate that there could well be in excess of €200m going to institutional investors and out of the control of farmers.
If you are like me and want to see your son/daughter and your grandson/daughter farm while maximising the returns coming back to us farmers by way of higher milk price, dividend growth and asset value, you must reject this vote and send a clear message to the board that our majority shareholding in the plc, isn’t for sale.
Not now. Not ever.
Michael Flynn dairy farmer
Rathgormack
Co Waterford
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