Glanbia and Dairygold should merge their Irish processing assets in a co-operative structure to deliver the scale and efficiency needed to compete globally, IFA president John Bryan said this week.

In a major development, Bryan called for the formation of a 'farmer controlled processing industry with scale' and added that farmers would be 'understandably wary of investment in plc projects'. He said that 'creative solutions can be found that strengthen farmer control and facilitate necessary investment without any significant dilution of co-op assets, even if plc funds are involved at some level'.

He said he will be meeting the leaders of both organisations 'to encourage them towards a successful outcome to their discussions'.

Glanbia co-op holds 54% of Glanbia plc, which is worth €782m at yesterday's valuation. Having marginally lost a de-merger vote in 2010, Glanbia farmer directors are keen to devise a solution that will be acceptable to shareholders. The first phase of the Dairygold investment is likely to be at Mitchelstown, once Glanbia commits additional milk to justify investment in a 15-tonne per hour drier.