Dairy Chitchat 4, an udder new thread.

Will the milk suppliers fund Kerry Coop in order to pay Kerry PLC for the processing plant.

a price neither side is happy with, they need a good referee between the two of them and quick

doesnt matter proportions dry to active, the active shareholders have been contributing 80-100m each year out of their business to supplement the plc growth...retired who have their feet up have been getting the benefit of dividends but not taking a hit on their milk price to provide adequate margin to aid plc share price and cashflow. The margin taken by plc is out of kilter with acceptable margins in dairy processing across the world

He'll need to tone down the cash in hand bit

Dry shareholders will have a thing or two to say about that. If the farmers want control of the milk processing, then let them pony up with their own funding. Put up or shut up

No. I think you may have used the wrong straws.

It is what it is, no use complaining about what should have been allowed or not allowed. If the milk suppliers really want control of milk processing then let them pay for it, otherwise let some other entity purchase it

Hard to see the CoOp buying it unless at a knockdown price. Why would farmers see the need to spend money to own the processing. Their milk is already being purchased anyway. Unless the PLC can get some outside investor to come in and take it over then I am afraid they are stuck with it. What other options do they have, they can continue as is in which case they need farmer suppliers or close it down.

IMO if they want out it would need to sell for very small money.

Alot of suppliers like myself couldn't give a rats ass to be honest.

That survey had 55% response rate so I'd say it can be discarded. It's the ones that don't care less that didn't bother partaking. The whole survey was probably conducted as a propaganda exercise in the first place.

The responsibility for processing should fall back on the coop.

That will be the responsibility of the sharhokders of the coop....not just the suppliers.

All coop shareholder agreements contain the rule that as a sharholder "The coop must collect all of the milk from all of the cows the shareholder grazes in the coop collection area, process and sell it and retur the market returns to the supplier"

How will the Coop finance the purchase?

I have a feeling on farm investment will collapse due to the uncertaintys with derogation, more incorporations, price and age demographics going forward.

It has completely stalled around here know of nobody doing any investments one lad wants to do a concrete tank nobody wants to do it for him.....

I don't want to be negative but this country has let costs run away. It's the small stuff that adds up. Building is a one off that benefits you for forty years. But it's electricity, detergents, straw, and the run of mill stuff that takes the profit and moral out of farming

The Co-op are in a very strong position imo... the PLC as u say want rid of it but are stuck with it..... the Co-op can take it or leave it... the longer it goes on the less the Dairy business is worth.... with a dwindling milk pool which could dwindle even more rapidly than expected if derogation is pulled... the Co-op should take their time over this one....