Glambia Co-op members have voted in favour of a deal to buy the remaining 40 per cent stake in Glambia Ireland from Glambia plc.
The €307 million deal gives the co-op 100 per cent control of Glambia’s dairy business which includes Avonmore, Kilmeaden and Premier brands.
Pat McCormack of the Irish Creamery Milk Suppliers’ Association (ICMSA), said the new board’s competence will be based on the strength of the milk price it pays to farmers.
“First, second and last their competence will be judged on their ability to climb the milk price league from the lowly position they have been occupying for an unforgivably long time,” he warned.
ICMSA has claimed Glambia Ireland pays suppliers a low price than rivals Kerry and Dairygold.
In 2014 milk became cheaper than bottled water in most supermarkets when demand stalled and prices fell.
Irish Farmers’s Association (IFA) dairy chairman, Stephen Arthur, said there would be an expectation for the board to pay a strong price to farmers that secures their livelihoods.
“They also have to run the business efficiently and leanly so it can maintain a market-leading return to its suppliers while remaining profitable,” he added.
LSL News.