The unwinding of the symbiotic relationship between Kerry Co-op and plc continues apace. Tuesday’s AGM again highlighted that Stan McCarthy, who stepped away from the co-op CEO position over a year ago, has not been replaced in that capacity. It now emerges that Brian Durran, Kerry plc’s company secretary departed the parallel role in the co-op months ago.

“Until recently, the management of company secretarial and related affairs of Kerry Co-op has been supported by Kerry Group plc”, a recruitment advertisement states. “The co-op now seeks to appoint a highly capable executive to assume this role and to further develop the society in accordance with the co-operative ethos”.

Radio silence at AGM

Meanwhile, I hear the AGM was a sticky affair, with a number of controversial topics up for discussion and radio silence, effectively, greeting suppliers on a number of fronts.

The Dealer understands that the ‘leading milk price’ problem is going nowhere. The 2015 final price determination process is still going through arbitration, with the possibility of a decision on the matter in September, I hear. The 2016 price seems destined to take the same slow road to resolution.

Further radio silence greeted suppliers on the night in relation to the patronage shares issue, which affects in the region of 400 Kerry farmers.

A test case is to be brought to the Revenue on the issue, however, this too appears to have been kicked down the road. I understand it could be another two years before anything concrete happens in the case.

Sticking with shares, it appears that by the end of the year up to 70% of those holding shares in Kerry will not actually be supplying milk to the co-op. A further 10% of suppliers, the majority of whom are young suppliers, have no shares at all.

Expenses in the co-op increased drastically, going from less than €500,000 in 2015 to a saucy €1.5m in 2016. An extra €600,000 or so was directly related to external consultants advising on the arbitration and taxation issues facing the co-op.

Some suppliers have told me that the current goings on are a joke, and suppliers are getting no answers from board members.