At least 35 dairy farmers are poised to switch their milk supply from Arrabawn to either Dairygold or Glanbia from 1 April.

The Irish Farmers Journal understands that 50 Arrabawn suppliers met as a group last Thursday to discuss their future plans. Over the past month, Dairygold representives met 50 Arrabawn suppliers who had expressed an interest in moving their milk to Dairygold. The 50 suppliers are reported to represent in the region of 40m litres of milk.

At the meeting, it is understood that approximately 25 of those present expressed a strong interest in switching to Dairygold. Another group of around 10 said they would be joining Glanbia. The remainder were undecided.

It is understood that the 25 suppliers have now requested a meeting with Dairygold CEO Jim Woulfe as well as a visit to one of Dairygold’s plants on either 4 or 5 February.

However, Arrabawn chief executive Conor Ryan told the Irish Farmers Journal that he has “no visibility” on any likely supplier exodus.

It is understood that the board and management of Arrabawn have offered to meet the 50 suppliers next Wednesday, 4 February.

“We are a farmer-owned co-op and are open to meeting any individual shareholder or group,” Ryan said.

When asked if there have been any recent discussions with Dairygold, he said: “It is very hard to have meetings with a co-op when they are canvassing your own suppliers.”

He urged suppliers considering leaving Arrabawn to make any decision “with the full facts”.

He said that the chairman and vice chairman had met representatives of the group a number of months ago. “We are and have been available to meet any supplier – we can’t be criticised for not being available for meetings,” he said.

Last May, Dairygold issued Arrabawn with an invitation to merger talks, putting in place an indicative offer of €2/share. The proposal was rejected by Arrabawn, with no discussions taking place.

Conor Ryan confirmed that Grant Thornton had undertaken an independent analysis of last year’s merger proposal from Dairygold. This was presented to the board of Arrabawn last week by the co-op’s auditor.

Ryan said that its key findings would be shared with interested shareholders. It is understood that the report found the Dairygold offer of €2 per share as being very low, with the co-op valued at approximately €6 per share.

The report also looked at the long-term viability of the co-op and found it to be on a very strong financial footing.

When asked if the board of Arrabawn remains united, Ryan said: “There was unity at board level on (turning down) the Dairygold proposal”.

Arrabawn’s milk pool of 270m litres is supplied by 950 farmers. Conor Ryan disputed claims that a group which met recently represented 40m litres.

The Irish Farmers Journal also understands that Glanbia milk procurement manager, Michael O’Neill, is expected to meet with some 20 Arrabawn suppliers next week.