DEAR SIR:

The merger between Lakeland and LacPatrick is very welcome. I can only wish it good fortune. Its success is our future milk price.

Michael Hanley has a proven track record. He is tough, in the nicest sense of the word and has earned good support and goodwill in the region. Lakeland is now playing in the senior championship and as the industry grows in volume it is condensing into fewer players. How these companies perform individually and interact collectively will be important to secure the best return for farmers.

While it is nice to see products like Lakeland Milk-stix or mini pots on a flight or in a far-off hotel room, it is the big ticket items like butter and powder that will determine success. This is where “Co-oppetition” with the others in the industry is vital.

There will be many issues for Michael and his team to tackle. One big topic is Brexit. Few know how this will impact but there is no doubt that it will have an impact. Unfortunately, there is not much that can be done yet but a leg each side of the border should be an advantage. It falls into the “wait and see” box. Another element to future success is how quickly both businesses merge in both thought and deed. How quickly can we move from “them and us” to “we”. We all play a part here. No victors and vanquished, just Lakeland together. I believe this is essential for rapid integration. Two other factors will help – favourable global milk prices and that most precious of commodities, luck!

Believer

I’m a great believer in looking forward but a little bit of history is worthwhile. Not specifically this exact merger but talks did take place in the past between the main players in the region.

There was also a joint venture project between a group of co-ops in the northern part of country proposed.

Talks got to an advanced stage. Why it did not go ahead is complex, but the main point is that since then many millions of farmers’ money has been lost, that is milk price forgone!

It is people that either block or approve any deal, that project was no different. When this happens, farmers lose out. If you look at the 30-year history of the region, there have been several mergers or comings-together. Some have cost a significant amount of money, ultimately farmer money. Are we condemned to only merge in this way?

If we look back over the last 30 years I can think of 10 separate entities that now make up Lakeland. Some of the mergers came about under pressure of debt which is in effect downward pressure on milk price. My wish would be that in future we will not have to go through millions of farmers’ money before doing the right thing. I’m not suggesting any other merger just now, but it is likely that some such deal will be logical in the future. Change is a constant. Prompt action at that time will save money.

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Co-op shareholders back merger

Shareholders back Lakeland-LacPatrick merger