Glanbia is seeking planning permission to develop its processing site at Belview, Slieverue, Co Kilkenny.

The first application is to build a new dryer on site, incorporating a new warehouse as well as production, evaporator, boiler, intake, utility and sprinkler buildings. The total new building area is over 12,000sqm, all within the existing site boundary.

The decision from Kilkenny County Council is scheduled for next week.

Cashflow

At a Wicklow ICMSA meeting on Tuesday night, farmers asked should only expanding dairy farms pay for the development, but Glanbia board member John Murphy told them it will be paid for out of cashflow.

The Irish Farmers Journal understands that there is €250m earmarked for expansion. Up to half of this will be spent on the site development.

The dairy giant will process the equivalent of 2,500 lorry loads of milk this week alone, almost 70m litres. The new dryer is due to be operational by 2019.

Meanwhile, the Belview dryer which was out of action last week has re-opened.

Planning

In a separate planning application, Glanbia has sought permission to extend the administration building, car park and truck loading and unloading bays at its Belview site. A decision on that application is expected in a fortnight.

Meanwhile, the company continues to hold information sessions for farmers on the upcoming vote that will see 60% of the Dairy Ireland segment sold to the farmer-owned co-op.

Investment

“There’s nobody really against the proposal – it makes perfect sense,” John Murphy told the Irish Farmers Journal.

“We’re going to have a €1.5bn agri-food business controlled by farmers, growing to a €2bn business in the next three years.

“We also have close to €2bn investment in the plc, making us the wealthiest co-op in Europe. Plus we have a €100m spin out, which is always welcome.”

Listen to the views of ICMSA members in our podcast below:

Listen to "Glanbia proposal discussed" on Spreaker.

The vote takes place on 18 May in Punchestown.

Farmer views on the Glanbia vote

John Hempenstall: “I think it’s a big decision for dairy farmers. They are taking their own business back into their hands. I don’t think there is a huge risk taking on the agri-business. If you are a shareholder, you are involved in the business and you own the business then you should be buying your inputs from the agri-business, simple as. If they are buying your milk, you should be buying their inputs. That’s the co-op ethos.”

Shane O’Loughlin: “The deal itself in theory is good and it’s probably a good move in the long run. But I have personal reservations about the Glanbia agri-business. Farmers will support agri-businesses that treat them well.”

Brian Laurence: “I wouldn’t like to see our shareholding in the plc going below 30%. I think that’s enough to give up, we had 54% not so long ago. I’ll probably vote for it but the agri-business might want to tidy itself up a bit.”