The Dealer always enjoys a spin to Balmoral Show, now located at the 65-acre Balmoral Park outside Lisburn. Big crowds, beautiful sunshine and top quality livestock on show.

Probably like a number of show goers I had one eye on the LacPatrick stand. With Glanbia, Lakeland, Aurivo and Dale Farm all signing a non-disclosure agreement with the Monaghan based co-op (for sight of a financial analysis of the business), an interesting few weeks lie ahead.

Rumours had it that a number of CEOs from these companies were spotted on the LacPatrick stand, but I can’t confirm or deny. What I can confirm was that the four companies were all putting their best foot forward over the four days.

Big hitters

That included a number of big hitters from Glanbia.

Let’s be clear, Glanbia only buy a small amount of milk direct from suppliers in Northern Ireland. Somewhere in the region of 100m litres. The big chiefs from the south usually leave it to the lads up north to woo the farmers at Balmoral Show. With Corbally and Bergin both in attendance, it would suggest Glanbia are serious contenders for the LacPatrick business.

That is not to discount the others. There are many good reasons why each might be successful in a deal. Getting your hands on a milk pool of up to 600m litres, a new 7.5t per hour dryer and a new butter plant is an opportunity that doesn’t come around that often.

The note of caution comes in the form of the debt in the LacPatrick business, rumoured to be over €40m. It’s a debt that not everyone could take on.

By mid-June each of the four suitors will have to make their case formally to LacPatrick. By mid-July it is expected that LacPatrick will announce their preferred option, and then enter into detailed negotiations.

What happens at this point will be fascinating. Will the unsuccessful bidders start to pick off the LacPatrick milk pool? If they do, it weakens the LacPatrick hand.

The other real danger for LacPatrick is that it negotiates a deal, taking it to a shareholder vote at an AGM, but it is rejected by members. The bar is high, and at least 75% must vote in favour. Make no mistake, it will have to be a good deal for LacPatrick suppliers.

But before all that, the co-op must hold their milk pool together. And to be fair to the LacPatrick chairman, his board, and senior staff, they worked tirelessly last week at Balmoral Show to do just that.

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