Changes in the Kerry co-op board could see its multimillion euro deal with Kerry Group accelerate, after being stalled in recent months. Pat Rohan, a dairy farmer from Annascaul in west Kerry, is set to challenge to become the new chair of Kerry Co-op when the co-op board meets on 15 December.

The Irish Farmers Journal understands Rohan will allow his name to be put forward for chair of Kerry Co-op at the next board meeting, which will mean a straight vote between him and the current chair, Mundy Hayes.

Rohan, a former county chair of Kerry ICMSA and the ICMSA’s national farm and rural affairs committee, has emerged as a serious challenger to Hayes for chair of Kerry Co-op after recent elections for three co-op board seats saw some new faces become board directors.

In east Limerick, the vice- chair of Kerry Co-op Martin Crowe lost his board seat to James Tangney in a surprise result, while Denis Donovan won a vacant board seat in west Limerick.

In Co Clare, Jim McInerney retained his seat.

Balance of power

There is now a feeling that the two new faces from Limerick on the 21-man board could swing the balance of power away from Mundy Hayes and his backers towards those more sympathetic to the cause of the Shareholder’s Alliance grouping within the co-op.

A crucial vote for chair of Kerry Co-op now looks set to take place in two weeks’ time, which could have major implications for the negotiations between Kerry Co-op and Kerry Group’s proposed joint venture deal.

As previously reported, Kerry Group has offered milk supplier shareholders in Kerry Co-op the opportunity to buy a 60% majority stake in Kerry Group’s primary dairy business, which has an annual turnover of €1.2bn and makes profits of €80m to €100m per year.

Negotiations

However, noises from the Kingdom suggest negotiations on this historic joint venture have stalled over the last two months and little progress has been made on how the deal will be funded by Kerry Co-op.

It is understood Kerry Group CEO Edmond Scanlon will address the board meeting of Kerry Co-op in two weeks’ time in a bid to keep the joint venture talks moving forward.