This is a subscriber-only article
The Glanbia Co-op annual general meeting (AGM) was held online like many other co-op AGMs on Tuesday.
Before the online meeting started on Tuesday, there were announcements that current Glanbia chair Martin Keane was to be replaced by Donard Gaynor on the Glanbia PLC board.
We also learned that Keane had also resigned from his position as chair on the co-op board, with a replacement to be decided on Thursday.
Share price decline
At the start of the AGM, the outgoing Glanbia chair apologised for the share price decline over the last number of months after a long period of double-digit growth.
Issues such as the impact of COVID-19 were discussed and Keane reiterated the need to retain the 3.2% profit after tax to run the business efficiently.
All schemes and bonus structures available to suppliers were outlined.
A 15c dividend on each co-op share for 2019 was discussed and the point was made that all bonuses and dividends need to be accounted for when comparing milk prices with other co-ops.
Processing capacity
Glanbia Ireland chief Jim Bergin said he was happy with the milk price paid in 2019 and was confident of another good showing in 2020.
On milk processing capacity, Bergin outlined that the third dryer at Glanbia’s new facility in Belview was only operating at full capacity for between 14 and 16 weeks of the year during peak milk supply and that this was costing the business money.
In contrast, the processing capacity at Ballyragget was full for 40 weeks of the year.
We understand that he suggested the peak-to-trough ratio of supply was costing suppliers the equivalent of 0.5c/litre.
The chair and chief executive both reiterated decisions taken were impartial
We don't know how many farmers were listening to the Glanbia co-op AGM. However, many still managed to ask questions around milk price, separation of boards for better governance, farmers not trading with the co-op, Brexit and an overall unsatisfactory milk price evolution for Glanbia Co-op.
The question that received most feedback from the top table was around shareholders and the independence of co-op governance in the future.
The chair and chief executive both reiterated decisions taken were impartial irrespective of roles held in both the co-op and plc. Throughout the meeting, both described the various dividends and money flows between both entities.
SHARING OPTIONS: