This is a subscriber-only article
Small numbers of shareholders turned up at the first of six information meetings organised by LacPatrick co-op ahead of a Special General Meeting (SGM) of the society taking place in Cookstown on 23 October.
At the SGM members will be asked to approve the proposed merger deal with Lakeland Dairies.
Ahead of that vote, less than 30 attended each of the meetings in Armagh and Omagh on Monday of this week, ahead of similar events in Clones on Tuesday, Monaghan on Wednesday, and Portglenone and Coleraine on Thursday. There are 533 LacPatrick shareholders based in NI, out of a total of 912.
On leaving the meeting in Omagh on Monday night, a number of LacPatrick suppliers explained that there is a lot of apathy among members in NI towards the deal.
“Most farmers believe the deal is a good as done, and that we have no other realistic option at this stage. I won’t bother to vote. Whatever happens, happens,” commented one local farmer.
While the other suppliers spoken to expressed similar sentiment, they all said that they would probably go to the SGM and vote in favour of the merger.
In general, there was an air of disappointment that the co-op has got to this point, but also an acknowledgement that any mistakes made in the past are not the responsibility of the current chair and board.
“The previous regime overspent on that new dryer in Artigarvan and then trying to sort effluent issues.
“Did they think we were all going to double and triple production to fill it?” asked another supplier.
He also expressed concern that some of the LacPatrick milk pool could yet be picked off by other milk buyers.
“A lot of men have just waited to see what happens. They were loyal to the old Town of Monaghan co-op, but that loyalty has gradually eroded away, which is reflected in the poor turnout tonight,” he said.
Despite that, the current LacPatrick board remains confident that the vast majority of the NI milk pool will remain with the new merged entity.
At the SGM on 23 October a quorum of 40 shareholders is required.
To approve the deal 75% or more must vote in favour.
If it is more than 50%, but less than 75%, a second confirmatory meeting will be held, where a simple majority is required.
Support shown at Lakeland meeting
There was also a small crowd of around 40 shareholders at the Lakeland information meeting held in Ballyconnell, Co Cavan, on Monday night. However, the majority present at the meeting indicated they were in favour of the deal.
Cavan’s IFA dairy committee representative and Lakeland supplier Seamus Dolan said he would be in favour as long as it did not cost farmers in the short term.
Speaking to the Irish Farmers Journal he said: “The biggest concern is previous mergers that cost the farmers money over a two or three-year period, but we’ve been assured by the board that it is not going to happen.”
Lakeland board member Gerard Donohoe said without exception every reaction he had heard had been positive. He said all board members were behind the merger and were excited by its potential.
“There’s no doubt the management of Lakeland dairies is capable of achieving and driving efficiencies. They have a proven track record in doing that. When we scale up I’ve no doubt there will be efficiencies gained and it will be positive for milk price”.
SHARING OPTIONS: