Glanbia has suffered the loss of quite a few dairy suppliers in the last 12 months – over 100 in total, counting both their own and those of Wexford Milk Producers.

One group everyone has assumed are not in play are the “corporate co-ops” of Centenary, Callan and Mullinahone. These three are independent co-ops who have shareholding in Glanbia Co-op, and supply their milk to Glanbia.

In Mullinahone’s case, Glanbia actually collect the milk. Callan and Centenary both collect their own milk. This relationship has been in place since the Avonmore days.

All three have signed milk supply agreements (MSAs) with their own suppliers, similar to the Glanbia MSA. The last step is for each of them to sign an MSA with Glanbia. This has not happened to date, and needs to by Friday 27 February to trigger the Glanbia Co-op bonus payments.

It’s not a done deal. As one farmer put it: “We won’t be bought or sold for 1c/l.”

There has been friction over milk collection payment – not at an ideal time.

All three are meeting among themselves over the next 10 days and are also talking to each other.

Callan’s board met, at least informally, with Strathroy back in January.

The co-ops do have options, being well located in the dairy heartland, with access to the motorway network. They have a substantial pool of milk (Centenary alone will supply 100m litres this year, with the others a further 15m litres plus) with significant expansion potential.

They also have a substantial and valuable shareholding in Glanbia Co-op, which they will want to protect. Some big decisions lie ahead for these farmers.

Gilsenan back on board

Meanwhile, Jim Gilsenan has been returned to the board of Glanbia. Louth farmer Gilsenan had previously served for 12 years, up to 2011, when he was unseated by David Farrell. Farrell has now reached the mandatory retirement age. Gilsenan sought to succeed him and was opposed by Eamonn McEnteggart, the former FMP chairman, at last Monday night’s advisory board meeting. The two were tied on 15 votes each. A second vote produced the same result, so the names went into the hat, and Gilsenan’s came out.

He will rejoin the board at the AGM in May.