The Irish Farmers Journal understands the board of Kerry Co-op has moved to establish a special subcommittee to bring forward new talks and re-engage with Kerry plc over a possible joint venture for the dairy processing business.

Ahead of the co-op’s annual general meeting in June the board felt that it would be a good move to form a sub grouping that would be able to spend some time fleshing out what is important and necessary for both sides to do business.

The board have created subcommittees in the past to deal with strategy, leading milk price and remuneration.

It is understood that the board members who are part of this joint venture group or subcommittee include relative newcomers to the dairy farmer board – Rathmore’s Conor Creedon and Killarney’s Denis Carroll.

Pat O’Donoghue from Clare is a member of the subgroup, while chair Mundy Hayes and CEO Thomas Hunter McGowan are also part of the subgroup.

Seemingly some of the thinking is that any joint venture should proceed for a much longer time frame – up to 20 years, compared to the five-year joint venture that formed part of the failed deal.

The Irish Farmers Journal understands that the co-op board was informed that one of the main reasons for the last deal’s failure was the lack of a roadmap for funding the investment and the absence of a plan for collecting milk suppliers’ portion of the funds required to make any joint venture possible.

It is also understood that Hayes has agreed to an extraordinary general meeting (EGM) of Kerry Co-op in August or September after the June AGM to include a rule change that would require the board to request shareholder approval for any major investment.

SGM signing

The latest tally of collected signatures the Irish Farmers Journal has heard for the special general meeting (SGM) is approaching 1,900 A and B shareholders.

Over 20% of shareholders and 20% of the shareholding is required to request the chair to call an SGM.

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