Any merger between Aurivo and Dale Farm has to deliver efficiencies, economies of scale and diversification so the business can compete on a global level, Dale Farm CEO Nick Whelan maintains.
“This isn’t about adding two businesses just to be bigger – it has got to be better – the better is in lower costs, more opportunities and less risk. The vision is to be paying farmers a really good milk price and giving them a confidence in their future,” he said.
Nick Whelan, CEO of Dale Farm, and Aidan Brennan, the Irish Farmers Journal dairy editor, at the RUAS Winter Fair, Lisburn, Co Antrim. \ Peter Houston
In recent weeks it has become clear that the deal won’t progress without the approval of the board of Irish dairy exporter, Ornua, given it is a major route to market for Aurivo products.
Whelan suggested discussions are potentially happening between both parties. In the meantime, he said it is very premature to think about when the deal might go to co-op members for approval.
If that does happen, at least 75% of members of each co-op would need to approve the deal for it to go ahead.
Lakeland view
Also speaking at the Winter Fair, Lakeland Dairies CEO Colin Kelly said the decision on whether Ornua approves the merger is very much for the board of the dairy export business.
“Whatever decision they [the Ornua board] make, we as a member of their organisation and as a shareholder, we will respect that,” said Kelly.
Colin Kelly, CEO of Lakeland Dairies, and Aidan Brennan, Irish Farmers Journal dairy editor, at the RUAS Winter Fair, Lisburn, Co Antrim. \ Peter Houston
On wider issues around consolidation in dairy co-ops, he said it is inevitable, but to date, has only tended to happen when one party is under pressure. The fact that people are now coming at it from a position of strength rather than struggle, can only be good for the industry, said Kelly.
“We are very open to consolidation – if it can bring 0.5 or 1p to our suppliers we are very much all ears and eager to have those types of conversations,” he added.
Any merger between Aurivo and Dale Farm has to deliver efficiencies, economies of scale and diversification so the business can compete on a global level, Dale Farm CEO Nick Whelan maintains.
“This isn’t about adding two businesses just to be bigger – it has got to be better – the better is in lower costs, more opportunities and less risk. The vision is to be paying farmers a really good milk price and giving them a confidence in their future,” he said.
Nick Whelan, CEO of Dale Farm, and Aidan Brennan, the Irish Farmers Journal dairy editor, at the RUAS Winter Fair, Lisburn, Co Antrim. \ Peter Houston
In recent weeks it has become clear that the deal won’t progress without the approval of the board of Irish dairy exporter, Ornua, given it is a major route to market for Aurivo products.
Whelan suggested discussions are potentially happening between both parties. In the meantime, he said it is very premature to think about when the deal might go to co-op members for approval.
If that does happen, at least 75% of members of each co-op would need to approve the deal for it to go ahead.
Lakeland view
Also speaking at the Winter Fair, Lakeland Dairies CEO Colin Kelly said the decision on whether Ornua approves the merger is very much for the board of the dairy export business.
“Whatever decision they [the Ornua board] make, we as a member of their organisation and as a shareholder, we will respect that,” said Kelly.
Colin Kelly, CEO of Lakeland Dairies, and Aidan Brennan, Irish Farmers Journal dairy editor, at the RUAS Winter Fair, Lisburn, Co Antrim. \ Peter Houston
On wider issues around consolidation in dairy co-ops, he said it is inevitable, but to date, has only tended to happen when one party is under pressure. The fact that people are now coming at it from a position of strength rather than struggle, can only be good for the industry, said Kelly.
“We are very open to consolidation – if it can bring 0.5 or 1p to our suppliers we are very much all ears and eager to have those types of conversations,” he added.
SHARING OPTIONS