Members of Arrabawn Co-op and Tipperary Co-op both separately voted to approve the proposed merger between the processors. In Tipperary, 94.8% of voting and present members supported the deal, while, at Arrabawn, 94.3% of members voted in favour.
Members of Arrabawn Co-op and Tipperary Co-op both separately voted to approve the proposed merger between the processors.
In Tipperary, 94.8% of voting and present members supported the deal, while, at Arrabawn, 94.3% of members voted in favour.
As both positive votes were higher than the required 75%, the merger is now deemed to be approved.
The next stage in the process will be for the proposal to be put forward for regulatory approval at the Competition and Consumer Protection Commission and to get approval from lenders.
Suppliers had been told that the new co-op - to be named Arrabawn Tipperary Co-op - will be formed early next year, once those hurdles have been cleared.
Reaction
Chair of Arrabawn Edward Carr said: “This is a historic day for dairying in one of the great dairying heartlands of our country.
"It’s, in particular, a great day for the members and suppliers of Arrabawn Tipperary Co-operative Society who have come together to not just create a new force in dairy processing but to consolidate their own futures with this decision.”
Chair of Tipperary William Ryan said: “The overwhelming support to merge our neighbouring societies makes good business sense for Tipperary and Arrabawn milk suppliers.
"We will have a valuable product mix with streamlined processes, which is key to maximising milk price return. The resultant new society will have the scale, facilities and financial strength to meet the challenges of the changing dairy industry.”
The new merged dairy and agri-trading co-operative will be owned and controlled by over 4,800 members, with more than 1,400 farmers supplying almost 750 million litres of milk annually. The co-op will have projected annual turnover exceeding €700m.
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